Spanish 10-year yield dips below 5 percent

LONDON: The Spanish 10-year government bond yield dipped below 5 percent on Thursday to hit its lowest levels since February as traders said the European Central Bank continued to support Spain and Italy's battered bond markets.

Equities were also recovering some of their sharp losses on Wednesday, stirring some buying of risky assets although markets remained nervy causing trade to be choppy.

The Spanish 10-year bond yield was last down 6.3 basis points on the day at 4.976 percent. The Italian equivalent fell 5.2 basis points to 5.057 percent.

Copyright Reuters, 2011