Spanish/German 10-year government bond yield spread widened 20 basis points to 463 bps, with Spanish 10-year yields 16.3 bps higher at 6.57 percent.

The equivalent Italian spread was 12 bps wider at 487 bps and the German Bund future extended gains to stand up 85 ticks on the day at 137.33.

"As expected, the opposition Popular Party secured a resounding victory in Spain's general election yesterday," Rabobank said in a research note.

"This outright majority bodes well as regards the implementation of fiscal reforms although, as we have noted on numerous occasions previously, such reforms are unlikely to provide much in the way of insulation from contagion owing to the systemic nature of the crisis."