LONDON Dec 3 Spanish and Italian bonds rallied
on Monday as appetite for higher yielding euro zone bonds picked
up after Greece announced better-than-expected terms for its
Greece said on Monday it would buy back bonds through a
Dutch auction as part of efforts to cut its ballooning debt,
setting a price range above market expectations.
Yields on some of the region's other struggling sovereigns'
bonds fell, with Spanish 10-year yields dropping
10 basis points on the day to 5.24 percent.
Equivalent Italian yields were also lower and
low-risk German debt prices retreated from the day's
"(The details) are better than expected. Therefore,
periphery now getting a bid... and that's weighing on Bunds,"
one trader said.