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.
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.
Belgian government bonds fell as the nation’s political stalemate prompted Standard & Poor’s to cut the outlook on its AA+ credit rating, as contagion from Europe’s sovereign-debt crisis threatens to infect more nations.
Spain’s five-year and 10-year borrowing costs fell to the lowest in over two years at a debt sale today suggesting Italy’s political stalemate hasn’t yet affected confidence in the euro-area’s fourth largest economy.
Belgian, Italian and French 10-year bonds declined, sending their yield differences with benchmark German bunds wider, on concern the region’s debt crisis is deepening as the economic recovery sputters.