Italian Bonds Gain as ECB Preps Asset Buying; Greek Debt Rallies
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Italian and Spanish bonds advanced for the first time in three days after the European Central Bank said a legal act enabling it to buy covered bonds, a component of its stimulus program, will come into force tomorrow.
Greek government bonds rallied, paring the biggest weekly decline in more than two years, after ECB Executive Board member Benoit Coeure said officials will start the next phase of bond-purchase stimulus in coming days. Benchmark German 10-year bunds fell for a second day, trimming a weekly advance that pushed the yield to a record low yesterday amid Greece’s desire to exit its bailout and reports signaling the euro area is heading for another recession.