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Italian, Spanish Notes Rise as ECB Loans Seen Spurring Demand

Italian two-year notes rose for a third day and Spanish securities rallied on speculation the European Central Bank’s provision of three-year loans is boosting demand for the two nations’ debt.

Five-year Italian notes gained for the first time in five days as borrowing costs declined and demand increased at a sale of six-month bills. The nation plans to auction as much as 8.5 billion euros ($11 billion) of debt tomorrow. German and Dutch two-year yields fell to records and overnight deposits with the ECB climbed to an all-time high after the central bank lent financial institutions 489 billion euros at a tender on Dec. 21.