Spanish, Italian yields extend fall

LONDON: Spanish and Italian government bond yields extended their fall on Tuesday as investors were lured back in after a recent sell-off fuelled by political risk which had cheapened the bonds.

Ten-year Spanish government bond yields were down 13 basis points on the day at 5.31 percent. Ten-year Italian yields fell 11 bps to 4.50 percent.

"We've had some decent buying, mainly domestics in Spain," one trader said.