Spanish Bonds Rise

Spain’s bonds rose as the country’s political stalemate came close to a resolution after the Socialist party leadership opted to let acting Prime Minister Mariano Rajoy take office for a second term, Bloomberg reported. Spanish 10-year debt yields fell to the lowest level in more than a week after the party’s federal committee agreed on Sunday that the 85 Socialist lawmakers should let Rajoy form a minority government following a confidence vote. With the party’s abstention, Rajoy will have enough support to plot a path toward a government. He’s to consult with Spain’s King Felipe VI on Tuesday in a step to trigger a confidence vote that could see him return to power by next weekend. Spain’s 10-year bond yield dropped three basis points, or 0.03 percentage point, to 1.08% in London. The 1.3% security due in October 2026 rose 0.325, or €3.25 per €1,000 ($1,089) face amount, to 102.065. The yield touched 1.07%, the lowest since Oct. 12.