Two-year Spanish yields up as doubts spur profit taking

LONDON: Two-year Spanish government bond yields rose over 20 basis points early on Wednesday as investors booked profits following last week's rally and with caution creeping in over a lack of details how a Spanish bailout may look.

Two-year Spanish bond yields were 21 basis points higher at 3.775 percent. Ten-year yields were 5 basis points higher at 6.95 percent.

"It's not clear that Spain is ready to ask for a bailout yet ... Now it looks more likely then not that if they do it will be a good few weeks from now," a trader said.

"I think that's introduced an element of uncertainty which probably reflects why there has been a slight retracement. But I see it as slight. With such a mammoth move, there is always a temptation to take profit."