Spanish Bonds Drop as Yields Surge at Auction; French Notes Gain
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Spain’s bonds fell, with 10-year yields rising above 7 percent for the first time in a week, after the nation’s cost of borrowing surged at a debt sale.
German two-year yields were below zero for a 10th day as lawmakers backed a euro-area bailout of Spanish banks. Austrian, Belgian and French yields fell to records amid demand for havens with higher yields than Germany. Spain’s two-year notes dropped for a fourth day as demand declined at auctions of 2.98 billion euros ($3.65 billion) of debt. Ten-year yields above 7 percent pushed Greece, Portugal and Ireland to seek international aid.