Spanish, Portuguese Bonds Drop After Moody’s Cuts Europe Ratings
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Spanish and Portuguese bonds fell, increasing the extra yield investors demand to hold the securities over German bunds, after Moody’s Investors Service cut the ratings of six European countries.
German bunds outperformed most of their euro-region peers after the rating company said it had downgraded Italy, Spain, Portugal, Slovakia, Slovenia and Malta, boosting demand for safer assets. Economists say a report today will show German investor confidence rose in February. Spain sold bills today, while Italy is scheduled to auction notes. Euro-area finance chiefs will meet in Brussels tomorrow to decide on a second financial aid package for Greece.