European Bonds Slide After BOJ, Draghi Damp Central-Bank Bets

European government bonds fell, pushing up borrowing costs for all euro-area sovereigns, as the Bank of Japan’s decision to leave monetary policy unchanged damped speculation central banks will increase debt purchases.

Spanish 10-year yields climbed to the highest level in two months as European stocks slumped. Portuguese and Irish bonds slid after European Central Bank President Mario Draghi told German television yesterday that debt buying will only be used to target prices that are out of line with fundamentals. German 10-year yields rose to the most in more than three months as a court began hearings on the ECB’s stimulus plan.