Spain’s two-year notes advanced for the first time in five days after the nation’s borrowing costs fell at a bill sale, fueling optimism the nation can contain its debt crisis.
Italy’s notes also rose as it auctioned 3.75 billion euros ($4.71 billion) of zero-coupon and inflation-linked securities. Spain’s Prime Minister Mariano Rajoy is hosting European Union President Herman Van Rompuy for the first in a series of meetings aimed at helping the nation fulfill its funding needs. European Central Bank policy makers are due to decide on interest rates next week. Finland prepared to sell 4 billion euros of 10-year benchmark securities via banks.
Finland’s 10-year bonds will be priced to yield three basis points more than the mid-swap rate, according to a person familiar with the deal, who asked not to be identified because terms aren’t set. Finnish securities maturing in April 2021 yielded 1.52 percent.