Spanish, Italian Notes Fall as ECB Debt-Purchase Optimism Wanes
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Spanish and Italian two-year notes fell for a third day amid speculation the European Central Bank’s plan to purchase the two nations’ securities won’t be sufficient to stem the regional debt crisis.
The notes underperformed their regional peers after an ECB quarterly survey of professional forecasters predicted the euro-area contraction this year will be worse than previously estimated. Spanish and Italian bonds jumped last week after ECB President Mario Draghi said the central bank may buy government debt in unison with the region’s bailout funds. Greek bonds dropped for the first time in four days as the jobless rate climbed to the most on record.