Spanish Yields Rip Higher as The IMF Disputes Greek Aid Plan

“Spanish bonds fell, pushing the 10- year yield to a six-week high, after the International Monetary Fund failed to agree with euro-area finance ministers on a strategy to help Greece bring down its debt load.

Germany’s 10-year bonds erased an advance after Bild Zeitung reported that the nation favored combining aid payments intended for Greece into a single installment of 44 billion euros ($55.9 billion). European policy makers gave Greece two extra years to reduce its budget deficit without saying how the additional funding needs would be covered. The yields on Austrian and Belgian securities declined to records and French bonds rose for a ninth day, the longest run since 1997.

“There’s clearly big disagreement between the IMF and Eurogroup,” said Lyn Graham-Taylor, a fixed-income strategist at Rabobank International in London. “The public nature of the spat has resulted in risk-off sentiment, which is affectingSpain.”

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