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.