Spanish, Italian Bonds Rise as ECB Offers Loans; Bunds Decline
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Spanish government notes rose for an eighth day and Italian bonds gained as the European Central Bank offered unlimited three-year loans to the region’s banks, boosting demand for higher-yielding assets.
German 10-year yields advanced as a report showed business confidence in Europe’s largest economy unexpectedly rose in December. Italian two-year note yields fell for a fourth day, touching a seven-week low, on speculation banks bought the nation’s debt to use as collateral at the ECB’s long-term refinancing operation. Spain sold more than its maximum target of bills today as borrowing costs fell. Greece issued 1 billion euros ($1.3 billion) of 91-day securities.