Germany rejected calls from allies and investors to do more tocounter market turmoil as Spain's financing costs surged andpressure mounted on Greek political leaders to submit writtencommitments to austerity measures.

Bond yields in France, Spain and Italy climbed as the absence ofprogress toward enacting a month-old comprehensive crisis-fightingpackage and a dispute over the central bank's role rattledinvestors. Spanish three-month bills were auctioned today at higheryields than Greece and Portugal.

“We don't have any new bazooka to pull out of the bag,” MichaelMeister, finance spokesman for Chancellor Angela Merkel's ChristianDemocratic bloc, said in Berlin today. “We see no alternative tothe policy we are following,” which sees debt cuts and keeping theEuropean Central Bank from becoming a lender of last resort, hesaid in an interview.

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