“Italian and Spanish bonds fell as the Group of 20 nations said Europe’s debt crisis still poses a threat to global growth.
The declines pushed the yield on the Spanish 10-year bond above 6 percent for first time in four days. The G-20, whose finance chiefs are meeting in Washington, cited “the situation in Europe” first among drags on the world economy, according to a draft statement obtained by Bloomberg News. French 10-year bond yields reached the highest in almost three months before the first round of presidential elections on April 22.
“Underlying sentiment is still pretty nervous and people are still pretty worried about the fiscal prospects in Spain,” said Nick Stamenkovic, a strategist in Edinburgh at RIA Capital Markets Ltd., a broker for banks. “With French elections starting, investors remain on the defensive toward risk markets. That will continue near term.”
The yield on Spain’s 10-year bond increased five basis points, or 0.05 percentage point, to 5.98 percent at 9:42 a.m. London time, after being as high as 6.04 percent. The 5.85 percent bond maturing in March 2022 fell 0.365, or 3.65 euros per 1,000-euro ($1,316) face amount, to 99.06. Italy’s 10-year yields climbed six basis points to 5.67 percent.
French 10-year yields were little changed at 3.10 percent, after reaching 3.17 percent, the most since Jan. 25. The extra yield that investors get for holding the securities instead of German bunds widened to as much as 149 basis points, the most since January. French securities slipped this week as Citigroup Inc. said it expects the nation’s credit rating to be cut over the next two to three years….”
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