Italy, Spain Notes Rise on Aid Optimism; Head for Record Week
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Italian and Spanish bonds rose, with two-year notes headed for a record week, on optimism European policy makers will agree on measures to pave the way for crisis-fighting assistance from the European Central Bank.
Italian bonds advanced for a third day as people familiar said the ECB may channel bailout loans via the International Monetary Fund. Spanish debt climbed for a fifth session after French President Nicolas Sarkozy said the euro area must converge economically and German Chancellor Angela Merkel said the bloc needs a fiscal union. Bonds of Europe’s most-indebted nations also rose as stocks gained and a U.S. report showed the jobless rate unexpectedly declined last month.