Spanish government bonds rose, pushing 10-year yields to the lowest since 2009, as improving euro-area retail sales and German factory orders added to signs the region’s recovery is gathering momentum.
Germany’s government bonds fell on speculation euro-area banks will sell fixed-income assets after the European Central Bank said lenders plan to accelerate repayments of emergency loans next week to the most since May.
Italian 10-year bond yields rose above those of Spain for the first time in 18 months amid speculation a vote on whether to expel Silvio Berlusconi from Italy’s Senate will destabilize the coalition government.
German 10-year bunds climbed for the fourth consecutive day as investors sought the safest assets after European governments signaled bondholders may need to take bigger losses on Greek debt in a second aid package.
When the housing bubble burst in 2006, U.S. policy makers looked to Japan for clues about what to do -- and not do -- in response. Now their attention is shifting to Europe as America gets set to follow that region with a concerted attack on its budget deficit.