Spanish bonds rose, after a rout yesterday set the securities on course for their first weekly drop in a month, amid speculation the European Central Bank will add further stimulus to boost the region’s economy.
Greek Prime Minister George Papandreou’s decision to seek a bailout for his nation before the terms of the aid package are defined shows he’s willing to do “whatever it takes” to get the funds, BNP Paribas SA said.
Portugal’s 10-year government bonds dropped for the 11th consecutive day after Moody’s Investors Service lowered the nation’s credit rating for the second time in three weeks amid expectations it will need a bailout.
Spain sold bonds today in the first test of whether Europe’s efforts to boost the firepower of its rescue fund are persuading investors to become more discriminating about which countries will avoid bailouts.
Greek bonds were the top performers in Europe last quarter, gaining for the first time since the sovereign debt crisis began, as investors bet that record high yields more than compensate for the possibility of a default.