Spain’s two-year note yield fell to the lowest in more than four years as speculation the European Central Bank will boost economic stimulus measures boosted demand for the euro area’s higher-yielding short-maturity debt.
German bonds declined, snapping an advance that pushed 10-year yields to the lowest in almost two weeks, as a report showed investor confidence in Europe’s largest economy increased to a four-year high this month.
Spanish bonds rose, pushing 10-year yields to a two-week low, before data that economists said will show U.S. employers added jobs last month and euro-area confidence improved, boosting demand for higher-yielding assets.
U.S. shares rallied for a second day following the biggest jump since January and gold plunged to a three-month low as lawmakers discussed a potential agreement to extend the nation’s borrowing authority. Treasuries erased early gains while the yen weakened and oil slid.
Britain is proposing to revive “perpetual gilts,” first used in the wake of the 1720 South Sea Bubble crisis, to allow the government to borrow for as long as possible at record-low rates, according to two people familiar with budget discussions.