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.