Spanish yields hit euro-era high after rating cut

Ten-year Spanish yields rose close to the 7 percent danger levels, rising 13 basis points to 6.91 percent, while two-year yields jumped 23 bps to 5.2 percent.

Italian bonds came under pressure before a widely-watched debt auction, with 10-year yields rising 6 bps to 6.3 percent. Two-year Italian yields rose 14 bps to 4.87 percent.