Spanish, Italian yields rise as Greece worries grow

LONDON: Yields on lower-rated euro zone government bonds rose on Wednesday as sentiment towards riskier assets deteriorated due to worries that Greece may not win sufficient support for its debt restructuring.

Traders said there was growing concern that Greece's bond swap would not receive a high enough level of participation to complete the restructuring, an outcome that would probably result in a disorderly default later this month.

Spain's 10-year bond yield rose 9 basis points on the day to 5.25 percent, while the equivalent Italian yield was 6.6 basis points higher at 5.15 percent. Spanish and Italian five and two-year yields also rose.