EURO GOVT-Spanish, Italian yields extend fall

LONDON Tue Feb 12, 2013 6:31am EST

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LONDON Feb 12 (Reuters) - Spanish and Italian government bond yields extended their fall on Tuesday as investors were lured back in after a recent sell-off fuelled by political risk which had cheapened the bonds.

Ten-year Spanish government bond yields were down 13 basis points on the day at 5.31 percent. Ten-year Italian yields fell 11 bps to 4.50 percent.

"We've had some decent buying, mainly domestics in Spain," one trader said.

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