Spanish 10-Year Yields Drop Below Treasuries on Coeure Rate View

Spain’s bonds rose, sending the 10-year yield below that on Treasuries for the first time in four years, after a European Central Bank Executive Board member said interest rates in the euro area will remain subdued.

Italian 10-year yields fell to a record as Benoit Coeure said borrowing costs in the currency bloc will stay low even as they begin to rise elsewhere. Treasuries have underperformed European bonds this year as the Federal Reserve has begun trimming its stimulus program. In contrast, a package of additional ECB measures last week boosted investor demand for government bonds amid signs inflation that saps the value of payments from fixed-income assets would remain below target.