Spanish, Italian Bonds Rally as Draghi Pledges to Preserve Euro

Spanish and Italian bonds rose for a second day as European Central Bank President Mario Draghi said officials will do whatever it takes to preserve the euro, suggesting policy makers may step in to cap surging debt yields.

Spain’s two-year yield fell the most this month and 10-year rates dropped below 7 percent after Draghi said addressing rising borrowing costs was within the central bank’s mandate. German bunds declined as his comments damped demand for the region’s safest assets. Irish notes advanced, with two-year yields falling below 4 percent, after the government said it would sell new bonds for the first time in almost two years.