LONDON May 30 German government bond yields hit
new lows along most of the curve on Wednesday, while Spanish and
Italian bond yields rose ahead of a bond sale by Italy and with
worries about Spain's banks intensifying.
German 10-year yields hit fresh lows of 1.34
percent, while futures rallied to 144.62 before
retreating slightly to stand 26 ticks higher on the day at
Five- and 30-year yields also hit record lows
Italian 10-year government bonds yields nudged
above 6 percent for the first time since mid-May ahead of an
auction of 5- and 10-year bonds, while
equivalent Spanish yields rose 7 basis points to 6.55 percent.
"There's no good news for the periphery out there, we're
just waiting for the next bad headline out of Spain. Some of
this looks like a pre-auction play," a trader said.
Shorter-dated paper in both countries unperformed, a typical
sign of stress in financial markets.