Spain Bonds Snap 7-Day Gain on Downgrade Bets; Italy Debt Falls
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Spanish 30-year bonds snapped a seven-day rally on speculation the nation’s credit ranking will be cut due to the euro-area debt crisis. Italian notes declined.
Spain’s government debt pared gains today on concern a lower rating would make it more difficult for the nation to reduce its deficit. Spanish and Italian bonds advanced earlier as people familiar said a European proposal to channel central bank loans through the International Monetary Fund may deliver as much as 200 billion euros ($270 billion) to fight the crisis.