Spanish Bonds Rise as Rajoy Pledges Cuts Amid Rescue Speculation
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Spanish bonds gained, with two-year yields dropping the most in two weeks, as Prime Minister Mariano Rajoy said his government was committed to cutting the budget deficit and investors bet the country will seek a bailout.
Spain’s securities rose for a second day after Deputy Prime Minister Soraya Saenz de Santamaria told opposition lawmakers they had called for the European Central Bank to buy government debt, setting out the case for an aid request. Spanish bonds are headed for the biggest monthly gain in a year after the ECB said it will act to reduce borrowing costs if countries request assistance. German two-year notes rallied as investors bid for most than the maximum target at a debt sale today.