LONDON, April 13 (Reuters) - Spanish government bonds came under renewed pressure on Friday, widening the yield premium over safe-haven Bunds after data showed the country’s banks borrowed heavily from the ECB in March.
Spanish banks borrowed 316.3 billion euros from the European Central Bank in March, almost double a month earlier as banks subscribed to the ECB’s special three-year liquidity line, data showed on Friday.
“We’ve got renewed fears ... about Spanish banks,” one trader said.
Spanish 10-year government bond yields were 11 basis points higher at 5.93 percent, widening the spread over Bunds to 426 bps.
Italian bond yields were also dragged higher, with the 10-year spread over Bunds widening 10 bps to 380 bps.