MW: Spain, Italy yields sink in wake of German ruling
By William L. Watts
FRANKFURT (MarketWatch) -- Spanish and Italian government bonds extended a rally Wednesday after Germany's top court refused to block Berlin's participation in the European Stability Mechanism, the euro zone's permanent rescue fund. The yield on two-year Spanish debt ES:2YR_ESP -3.49% fell 7 basis points to 2.76%, while the 10-year yield ES:10YR_ESP -0.82% fell 6 basis points to 5.60%, according to electronic trading platform Tradeweb. Italy's two-year yield IT:2YR_ITA -4.00% dropped 11 basis poitns to 2.38%, while the 10-year yield IT:10YR_ITA -1.04% declined 6 basis points to 5.02%. A basis point is 1/100th of a percentage point. Yields drop as bond prices rise.
