Spain’s Borrowing Costs Are Below Italy’s for First Time in Year
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Spanish borrowing costs fell below those of Italy for the first time since May 2010 on speculation the Iberian nation’s lighter debt load makes it more able to withstand contagion from the region’s fiscal crisis.
Spain’s 10-year bonds rallied, with the yield tumbling 25 basis points to 6.04 percent at 4:18 p.m. in London. Ten-year yields from Italy, which has the region’s biggest bond market, fell eight basis points to 6.11 percent. Spanish bonds yielded as much as 81 basis points more than their Italian counterparts as recently as June 16.