Italian, Spanish yields rise after Gross leaves Pimco

LONDON: Italian and Spanish 10-year bond yields rose on Friday after Bill Gross said he had left the world's biggest bond fund Pimco, which has large investments in euro zone peripheral bonds.

"There is a perception that Pimco is heavily long peripheral bonds, therefore people assume there could be some sellers," said one government bond trader, adding that some investors feared the fund may change strategy.

Italian 10-year bond yields rose 4 basis points on the day to 2.40 percent, while equivalent Spanish yields rose 5 bps to 2.20 percent.

Bill Gross was Pimco's chief investment officer. He left to join Janus Capital Group.