Spanish and Italian Yields Fall as Speculation Rises Over ECB Bond Buying

“Spanish and Italian bonds surged for a third day on speculation euro-area policy makers will sanction purchases of government debt to ease the debt crisis.

Italy’s 10-year yields fell below 6 percent for the first time in a week after Le Monde reported that the European Central Bank is preparing to buy securities in the secondary market, followed by primary-market purchases from the region’s bailout funds. German bund yields climbed to a three-week high after Finance Minister Wolfgang Schaeuble said today he welcomed comments from ECB President Mario Draghi that officials will do whatever it takes to preserve the euro.”

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