Spanish bonds rise

Spanish government bonds advanced as the European Central Bank’s first targeted-loan program came in below economist estimates, boosting speculation policy makers may resort to sovereign bond-purchases to boost growth.  Italian 10-year securities also rose and German benchmark bunds erased a decline after details of the ECB’s loans were released. France’s bonds slipped as the nation auctioned two-and five-year debt and index-linked securities amid concern the country’s credit rating may be lowered. Spain and Ireland auctioned debt at record-low yields. The ECB’s 82.6 billion-euros ($106.4 billion) allotment of loans is a ‘disappointing figure,’ said Frederic Pretet, a Paris-based strategist at Scotiabank. It’s ‘likely to boost speculation that the ECB will have to do more.’  Spain’s 10-year yield declined four basis points, or 0.04 percentage point, to 2.24 per cent at 11:04 a.m. London time. The 2.75 per cent bond due in October 2024 rose 0.355, or 3.55 euros per 1,000-euro face amount, to 104.515. The equivalent Italian rate fell two basis points to 2.40 per cent, according to bloomberg.com