The advance sent Spanish five-year note yields down from a euro-era record. The ECB bought larger-than-usual sizes and quantities of the Italian debt, said two people with knowledge of the trades. Italian Prime Minister-designate Mario Monti will announce his new government today and Greek Prime Minister Lucas Papademos will face a vote to give him a three-month mandate to implement budget measures. German bonds underperformed French and Belgian debt after a sale of two-year notes.
"The European bond market is becoming very binary, and ECB-dependent," said Mohit Kumar, head of European interest- rate strategy at Deutsche Bank AG in London. "Whenever the ECB steps in, the market likes it, when it steps back, you see pressure. There are no real buyers."
The yield on 10-year Italian bonds slid 29 basis points, or 0.29 percentage point, to 6.79 percent at 10:02 a.m. London time. The 4.75 percent securities due September 2021 rose 1.80, or 18 euros per 1,000-euro ($1,352) face amount, to 86.37.
Spanish 10-year bond yields fell nine basis points to 6.25 percent, with five-year note yields down five basis points at 5.66 percent. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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