LONDON: French, Austrian and Belgian government bonds came under pressure on Thursday as a strong Spanish auction improved sentiment towards riskier assets.
Ten-year French government bond yields rose 18 basis points to 2.59 percent, Belgian yields jumped 17 bps to 3.15 percent, and Austrian yields surged 17 bps to 2.27 percent.
"You're seeing a relief rally across risk assets and peripherals are benefiting from that at the expense of the core and semi core," said Nick Stamenkovic, strategist at RIA Capital Markets in Edinburgh.
"In this environment Spain would outperform Italy - it's suffered so much over the last month and it looks like the EU (European Union) is finally grasping the problem in Spain."
Italian bonds also came under pressure, with 10-year yields rising 9 bps on the day to 5.76 percent. Equivalent Spanish bonds outperformed, with 10-year yields down 8.1 bps at 6.22 percent.
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