Portuguese bond spread tightens, ECB seen buying
LONDON Jan 10 (Reuters) - The premium investors demand to hold Portuguese government bonds rather than benchmark German debt fell on Monday, reversing an earlier rise as traders cited talk of bond buying from the European Central Bank.
"They're buying five-years and ten-years in Portugal, whatever people are offering really," a trader said, adding that individual orders were not of a greater scale than had previously been seen.
The Portuguese/German 10-year bond yield spread PT10YT=TWEB DE10YT=TWEB narrowed to 429 basis points from around 440 bps at Friday's settlement.
Spanish and Italian bond yield spreads also tightened off their widest level.
(Reporting by William James)