Spanish Bonds Rise as Rajoy Bank Plan Garners Support

Spanish bonds rose for a third day as Prime Minister Mariano Rajoy’s call to boost efforts to protect the region’s banks gathered support among European leaders.

German securities fell, pushing up yields from record lows, as a report showed unemployment in Spain declined for a second month, damping demand for the safest fixed-income assets. The top European Union and French finance officials today pressed to allow direct euro-area aid for troubled banks after Rajoy called for a centralized system to recapitalize lenders. Spanish and Italian 10-year bonds jumped even as German government spokesman Steffen Seibert said jointly issued bonds in the euro area are unsuitable at this time.