Two days after a senior government official said Spain’s access to debt markets was closed, the Treasury beat its 2 billion-euro target ($2.5 billion) at a bond sale, easing concern about financing the region’s third-biggest budget deficit.
German bunds rose, pushing yields down the most in two months, after European finance ministers held back a rescue package for Greece, increasing pressure on politicians in Athens to ratify new austerity measures.
Irish bonds led a surge by securities from Europe’s high-deficit countries as political leaders prepared a pledge to defend the euro and bridge differences over the mandate of the European Financial Stability Facility.
German bonds gained, with five-year yields falling to the lowest in two weeks, as demand rose at a sale of the notes and an official said the nation rejects plans to combine the current and permanent euro-area rescue funds.
Portugal’s bonds plunged after Moody’s Investors Service cut its credit rating, sending yields to records and leading losses across Europe’s most indebted nations on concern the region’s debt crisis is spreading.