“Spain’s bonds led a slump among the euro-region’s higher-yielding government securities after a minister called on the European Central Bank to buy its debt and stem the financial-market turmoil.
Ten-year Spanish yields jumped to a four-month high before the nation sells 12- and 18-month bills tomorrow and notes due in October 2014 and January 2022 on April 19. The cost of insuring Spain’s securities against default advanced to a record, while Italian bonds slid and Portuguese 10-year rates rose for an 11th consecutive day. German bund futures climbed to a record as investors sought the safest assets.
“Clearly investors are again getting worried that Spain may not be able to overcome its problems without external help,” said Elwin de Groot, a market economist at Rabobank Nederland in Utrecht. “One thing that could stop this is ECB intervention but they are not extremely keen on taking that role at this point in time. Sentiment is starting to crumble.”
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The Euro is trading 0.0037 @ 1.3003
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