Spanish bond yields rise before auction

LONDON: Spanish government bond yields rose on Thursday, ahead of an auction of up to 3 billion euros worth of three-, four- and 10-year debt as investors made room in their books for the new supply.

Ten-year Spanish yields were last 11 basis points higher at 6.52 percent, taking the spread over benchmark German Bunds to 508 basis points. Italian 10-year yields also rose slightly to 5.83 percent.

Spanish five-year yields were 18 bps higher at 5.68 percent.

Both Spanish and Italian yields have risen this week as euphoria over last week's summit agreement to re-model the euro zone's rescue funds has faded with markets keen for details of how the accord will be implemented.