Spain’s 10-year bonds fell, widening the yield difference with benchmark German bunds to the most in almost two weeks, after a sale of three- and five-year debt and as investors awaited the Federal Reserve’s policy decision.
Portugal’s bonds rose, pushing five- year yields toward a record low, after Prime Minister Pedro Passos Coelho said the nation’s finances were strong enough to exit its bailout program without a precautionary credit line.
Portuguese bonds led gains in euro- area securities, with 10-year yields approaching the lowest since 2006, amid speculation the government will be able to exit its bailout program next month without a financial backstop.
Poland’s improving public finances aren’t enough for an upgrade at Moody’s Investors Service, even as the derivatives market deems the nation’s bonds as safe as French debt that’s rated four steps higher.
Spain’s 10-year government bonds fell, snapping gains that pushed the yield below 3.5 percent for the first time in eight years, before the country sells as much as 5 billion euros ($6.88 billion) of debt tomorrow.