Spanish Bonds Rise Most Since Start of Euro on Draghi Debt Plan
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Spanish bonds rose, pushing 10-year yields down by the most in a week since the euro was introduced, as the European Central Bank’s new bond-purchase program fueled optimism that the region’s debt crisis will be contained.
Italian bonds also advanced, reducing the extra yield that investors demand for holding the nation’s 10-year securities instead of similar-maturity German bunds to the least in five months. ECB President Mario Draghi said two days ago that policy makers agreed to an unlimited debt-purchase program to cap borrowing costs for so-called peripheral nations. Ten-year bund yields rose by the most in six weeks.