Spanish, Italian government bond yields ease

LONDON: Italian and Spanish government bond yields fell on Wednesday in thin trade helped by hedge funds closing out short positions.

Italian 10-year bond yields were 9 basis points lower at 5.94 percent, with the Spanish equivalent down 7 basis points at 6.76 percent.

"It's a little bit of fast money but we're not seeing much going through," one trader said.

"Spain's had a widening bias recently and people have made decent money out of it and now they are taking a bit of profit," one trader said."