France and Spain have both reported strong demand following government bond auctions early this morning.
The yield on French 10-year bonds dropped from 3.22% in November to 3.18% this morning. The French government reports that it raised €1.57 billion from the sale of 10-year bonds, down from €2.9 billion in November.
Spain meanwhile raised the maximum of €3.75 billion, as the yield on five-year bonds reached 5.6% from 4.8% in November.
The spread on Spain’s 10-year government bonds is 3.96% versus the bund, while the equivalent French paper has a reduced spread of 1.11% against the bund.
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