Italian yield rises after bond auction

5-year, 10-year spreads with German bunds expand to near record highs

LONDON - Italian bonds fell for the first time in three days after the nation paid the highest yield since June 1997 at a 3-billion-euro ($4.1 billion) debt sale on Monday, highlighting the challenge facing the new government to win over investors.

Spanish government securities also slid as European Central Bank Governing Council member Jens Weidmann suggested the central bank should end its support of the region's most indebted nations.