Italian Bonds Drop Before Auction Amid Berlusconi Pact
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Italian and Spanish 10-year government bonds declined for a second day before the nations hold their first debt sales of the year later this week.
Italian yields rose following their biggest weekly decline since November, as former Prime Minister Silvio Berlusconi renewed his political partnership with the Northern League before a general election next month. German 10-year bonds advanced for the first time in four days as a report showed euro-area producer-price inflation slowed more than economists estimated in November.