Spanish Bonds Slide With Italy’s Amid Signs of Global Slowdown

Spanish and Italian bonds led losses among the securities of Europe’s so-called peripheral nations as China’s manufacturing and euro-area services and factory output all contracted, sapping demand for higher-yielding assets.

Spanish five-year yields climbed the most in eight weeks as the nation’s borrowing costs increased at a 4.08 billion-euro ($5.26 billion) sale of debt maturing between 2016 and 2026. Portuguese and Greek bonds also slid as Europe’s benchmark stock index slumped 2 percent and Japan’s Topix index tumbled the most since March 2011. German bunds were little changed.