German firms back eurobond issuance

LEADING German business groups called for joint eurozone bond issuance, despite their government’s opposition, and the European Central Bank showed its intent to defend Italy and Spain.

The ECB spent a record €22 billion on government debt last week to try to halt the spread of the eurozone debt crisis.

Spanish and Italian bond yields, which had soared to dangerous levels, fell back as a result of the central bank’s support, which marked its first bond purchases for 19 weeks.