Italian, Spanish Bonds Rise as Coeure Says ECB to Preserve Euro

Italian bonds rose, snapping a decline from yesterday, as European Central Bank executive board member Benoit Coeure said the institution will do everything it can within the terms of its mandate to preserve the euro.

Spanish securities also gained as Coeure’s comments echoed ECB President Mario Draghi’s pledge in July to do “whatever it takes” to defend the currency. So-called peripheral bonds slid yesterday as a bailout agreement for Cyprus failed to convince investors that fallout from its banking crisis would be contained. German bunds fell as demand for the region’s safest assets waned. France sold new 30-year bonds via banks.