Greek bonds rose for a fifth-straight day, pushing 10-year borrowing costs to less than 10 percent, signaling an easing of financial-market tension in the country that triggered the euro-region’s sovereign debt crisis.
The European Financial Stability Facility’s debut 5 billion-euro ($6.9 billion) bond to help pay for Ireland’s bailout rose in the first day of trading after investors bid for nine times the securities on offer.
The cost to insure financial-company debt from default held at a 19-month low in Europe as Spain’s bad bank planned a bond issue over the holiday period and PSA Peugeot Citroen said it refinanced $15 billion of debt.
Moody’s Investors Service’s optimism that Greece’s current pace of reforms will lead to an upgrade of the nation’s debt isn’t backed by evidence that a recovery is taking hold, according to Matrix Corporate Capital LLP.
Italian Prime Minister Silvio Berlusconi faces calls for his resignation amid a sex-related scandal, driving up bond yields a month after he quelled a revolt that threatened to bring down his government.