Spanish, Italian bond yields rise

LONDON: Spanish and Italian government bond yields rose on Thursday, with traders citing domestic investors selling short-dated paper in preparation for next week's peripheral debt supply.

Spain sells treasury bills next week, while Italy returns to bond markets after a month of absence.

Spanish 10-year bond yields were 13 basis points higher on the day at 6.44 percent, while two-year yields were 18 bps higher at 3.79 percent.

Italian 10-year yields were 7 bps higher at 5.74 percent, while two-year yields rose 16 bps to 3.25 percent.

"We've seen selling from what we classify as domestic fast money accounts in the two, three and four-year area of the curve," one trader said, cautioning that volumes were thin.