BUSINESS

Bailout countries' bonds climb despite EU poll results

Spanish bonds advanced on Monday on speculation the European Central Bank will increase economic stimulus and as European stocks climbed.

Greek, Irish and Portuguese bonds also gained even as parties opposed to closer European Union surged in the polls.

“The election results are a positive, especially for Italy and Greece, where euroskepticism would have been a powerful threat to pending reforms and to the return of international investors,” Alberto Gallo, head of macro-credit research at Royal Bank of Scotland Group Plc in London, said.

The yield on Greek 10-year bonds fell 25 basis points to 6.25 percent and that on similar-maturity Portuguese debt dropped six basis points to 3.70 percent.

[Bloomberg]

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