The cost to insure company debt from default fell to a nine-month low in Europe on optimism Greece’s bond buyback will unlock aid and the Federal Reserve will announce steps to stimulate economic growth.
The cost of insuring European corporate debt from default fell to a six-week low on improving confidence in the global economy, while Daimler GA and UniCredit SpA sold debt as borrowing costs held near record lows.
Spain’s 10-year bond yields fell to the lowest in eight months and the rate on similar-maturity Italian debt dropped to the least since 2010, signaling the debt crisis that triggered global financial-market turmoil is easing
The pound rose for the first time in four days against the euro amid speculation an agreement among European finance ministers to ease the terms of emergency aid for Greece will fail to stem the region’s debt crisis.
Spanish utility bonds rallied the most of any European corporate debt this week as borrowers led by Gas Natural SDG SA benefited from the country sidestepping a junk rating. Credit pared its rally after the end of a two-day European Union summit.
Spain’s bonds fell, pushing five- and 10-year yields to euro-era records, as the nation’s borrowing costs rose at an auction amid concern its banks’ and regions’ debts will force it to seek a sovereign bailout.
Germany’s bonds rose, with 10-year yields dropping the most in a week, after a report showed the nation’s exports fell more than analysts forecast on concern the debt crisis is weakening economies across the region.
German 10-year bunds declined, paring their biggest weekly advance in almost a month, after a report said euro-region policy makers will unveil a financial bailout program for Spain as early as next week.