December 3, 2012 / 9:41 AM / in 5 years

EURO GOVT-Spanish bonds rally as Greek plan boosts periphery

LONDON, Dec 3 (Reuters) - 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 debt buyback.

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 peaks.

“(The details) are better than expected. Therefore, periphery now getting a bid... and that’s weighing on Bunds,” one trader said.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below