Italian, Spanish Bonds Gain

Successful auctions push yields lower; ECB leaves benchmark rate unchanged.

Italian and Spanish bonds jumped as borrowing costs slid at auctions and the European Central Bank kept its benchmark interest rate unchanged. German debt slipped.

The advance pushed Spanish two-year note yields to the lowest since March. The government sold 10 billion euros ($12.7 billion) of notes, twice the sales target, while Italy auctioned 12 billion euros of bills, easing concern the countries would struggle to finance their debts. The ECB held its main rate at 1 percent, an outcome predicted by economists in a Bloomberg survey. German 10-year bunds pared declines as reports showed U.S. retail sales and jobless claims missed estimates.

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