Italian 10-year bonds rose for a ninth week, the longest run of gains since 1998, as the European Central Bank signalled the economy is stabilising and Greece won the world's biggest sovereign-debt restructuring.
The gains pushed Italy's 10-year yield down Friday to the least since June. Greece pushed through its restructure Friday after private investors forgave more than €100 billion (Dh482 billion) of debt.
German bonds were little changed as demand for safer assets waned after US employers boosted hiring more than economists predicted last month. The ECB left its benchmark interest rate at one per cent on March 8.
"For the time being, these levels are reasonable," said Orlando Green, a London-based fixed-income strategist at Credit Agricole SA, referring to Spanish and Italian yields. "The markets still need to be convinced of their fiscal credibility."