Bunds Soar on Safety Bid; Italian, Spanish, Greek Bonds Slump
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German 10-year bond yields sank the most in more than three years amid concern that the U.S. credit rating may be cut and as the euro-region debt crisis spread, boosting demand for the safest assets.
Italian 10-year securities slumped for a third week in four, as the nation’s borrowing costs rose at a bond sale, spurring concern that debt-crisis contagion is infecting the larger euro-area nations. Spanish debt fell as traders questioned the clarity of Europe’s support measures for its larger nations. U.S. lawmakers reached an impasse over raising the nation’s debt ceiling, boosting the odds of a downgrade and default.