EURO GOVT-Spanish, Italian bond yields ease

LONDON, April 30 Mon Apr 30, 2012 10:11am EDT

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LONDON, April 30 (Reuters) - Yields on Spanish and Italian government bonds eased on Monday with traders citing some investors covering short positions in thin volumes.

Spanish 10-year yields were last 11 bps lower at 5.79 percent, with the Italian equivalent down 10 bps at 5.55 percent.

"We're seeing a bit of a short-squeeze ... as equities have improved a bit and credit markets have tightened as well," a trader said.

"It looks like Italy is having a decent move, but volumes are particularly low today," one trader said.

Shorter-dated Spanish bonds underperformed ahead of auctions later this week.

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