Spanish and Italian Yields Fall Ahead of the Fed Meeting

“Spanish and Italian bonds rose for a second day on speculation European leaders are seeking ways to cut countries’ borrowing costs. Stocks and U.S. index futures rose as Greece’s Pasok party leader Evangelos Venizelos said the country is forming a government and before theFederal Reserve announces whether it will take new steps to boost the economy.

The yield on the Spanish 10-year bond fell 18 basis points to 6.86 percent at 7:45 a.m. in New York, with the equivalent maturity Italian yield 12 basis points lower. The Stoxx Europe 600 (SXXP) Index added 0.3 percent and Standard & Poor’s 500 Index futures increased 0.2 percent. Japan’s Topix rallied 1.7 percent to the highest since May 15 after exports beat estimates. The Dollar Index fell less than 0.1 percent. Turkey’s lira gained after Moody’s Investors Service upgraded the country’s debt. Cotton climbed 1.2 percent after jumping 6 percent yesterday.”

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