LONDON: Spanish government bond yields turned flat on the day, reversing an earlier fall, as relief after the country secured a banking bailout proved to be short-lived.
Spanish 10-year yields rose to 6.26 percent, up 1.4 basis points on the day having earlier fallen to as low as 6.04 percent.
Markets initially reacted positively to the news that Spain had agreed a bailout of up to 100 billion euros for its stricken banks. However, that senitment gave way to doubts over how the bailout will be structured and whether the bailout solved the country's problems.
"There's so little detail, we don't know where the money is coming from, we don't know what terms it's going to be granted on, we don't know how much Spain is going to apply for in the long run," a trader said.
"There's a lot of potential negatives and unknowns out there the market is unwinding some of the euphoria we saw earlier today.
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