Spain 2-Year Yield Drops Most in 2012 on ECB Buying Speculation
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Spanish two-year notes rose this week, pushing down yields the most since December on speculation the European Central Bank will buy shorter-maturity government securities to help quell turmoil in the region’s debt markets.
Spain’s 10-year bond yield slid below 7 percent yesterday, paring a surge after ECB President Mario Draghi initially failed to persuade investors that policy makers would be able to halt the rise in borrowing costs. Spanish Prime Minister Mariano Rajoy said he would consider asking the euro region’s bailout funds to buy Spanish debt .