Portugal’s two-year notes rose for a third day after the nation said yesterday it will buy back debt as it works toward exiting its bailout program, adding to evidence the euro area is putting the debt crisis behind it.
Germany’s government bonds were little changed, with 10-year yields about one basis point from the highest level in a week, before the European Central Bank announces its monthly monetary policy decision.
Spain sold 3.88 billion euros ($5.1 billion) of three- and six-month Treasury bills, near the maximum target, as borrowing costs rose amid lingering concern the nation will struggle to fund its deficit.
Germany’s 10-year government bonds rose, pushing yields down from the highest level in 17 months, as a U.S. labor-market report added to signs a global selloff in fixed-income securities was excessive.
Italy sold 22.3 billion euros ($30 billion) of government inflation-linked bonds aimed at retail investors, setting a record and allowing the Treasury to potentially cut the size of debt auctions for the rest of the year.