Italian Bonds Slide on Contagion Concern; German Bunds Advance
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Italian bonds led a decline in debt from Europe’s most-indebted nations on concern a crisis-fighting strategy agreed on by euro-area leaders at a summit last week won’t halt the spread of the region’s debt crisis.
The five-year Italian yield rose to the highest since the euro was introduced in 1999 as traders speculated Prime Minister Silvio Berlusconi will struggle to deliver pledged deficit cuts. Spain’s 10-year rates rose to a 12-week high as China’s Xinhua News Agency said the Asian nation can’t play the role of “savior” to Europe. Belgian bonds fell after the nation sold debt. German bunds rose as New York-based broker-dealer MF Global Holdings Ltd. filed for bankruptcy.