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Italian, Spanish Yields Fall By Most in Euro Era on ECB Buying

Italian and Spanish bonds surged, driving yields down the most since the euro began in 1999, as the European Central Bank bought the debt to stop the fiscal crisis infecting the area’s third- and fourth-largest economies.

The extra yield investors demand to hold bonds from Spain and Italy instead of German bunds narrowed as four people with knowledge of the transactions said the ECB purchased the nations’ debt. It also bought Irish and Portuguese securities, two people said. Belgian securities also climbed relative to bunds on optimism the measures may stem contagion. German bonds rose as stocks dropped amid concern global growth is slowing.