Spain’s 10-year bonds headed for their worst week since August after a government report showed the nation’s jobless rate climbed to a record. Two-year notes also headed for a weekly decline as the data added to evidence the economy is worsening after the central bank said this week gross domestic product shrank for a fifth quarter. German bonds rallied as French household sentiment worsened, boosting demand for the region’s safest assets. Italian securities fell as the nation sold a combined 4 billion euros ($5.17 billion) of inflation-linked and zero-coupon debt. “Contracting pressures in the economy remain ... (full story)