Spanish two-year notes stayed higher after the nation sold 2.2 billion euros ($2.8 billion) of debt due 2014, 2015 and 2017, more than the 2 billion euro maximum target.

The two-year yield fell 13 basis points to 4.89 percent at 9:49 a.m. London time. Spanish 10-year yields declined seven basis points to 6.67 percent.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net