LONDON Jan 15 Spanish and Italian bond yields
reversed an earlier rise on Tuesday with traders citing strong
demand at the two countries' debt auctions.
"T-bill auctions were OK. There is good demand for this
syndicated Italian deal so I think that's why (yields are
falling)," a trader said.
Spain successfully sold 5.75 billion euros of treasury
bills, beating their initial target of 4.5-5.5 billion euros
while Italy was selling 15-year bonds via syndication.
Spanish 10-year yields were last flat on the day at 5.04
percent, having risen as high as 5.14 percent
earlier while equivalent Italian yields were 2
basis points lower at 4.17 percent.