Spanish Notes Climb as Bill Sale Meets Target Amid Rising Yields

Spanish government notes climbed, trimming seven days of losses, as the nation met its maximum target at a bill auction even after speculation the country will need a sovereign bailout pushed up borrowing costs.

Two-year yields fell from a six-and-a-half month high reached yesterday as an European Union official said the conditions attached to Greece’s aid program may be modified once the nation has formed a government. German bunds fell,, with 10-year yields rising the most in two months on speculation the Federal Reserve will do more to boost the U.S. economy, damping demand for the safest assets. Greek bonds declined.