RTRS:EURO GOVT-German 10-year yields rise above U.S. counterparts
(Reuters) - Ten-year German government bond yields rose above their U.S. counterparts for the first time since early February on Friday as Bunds came under heavy pressure after a European Union summit surpassed market expectations.
European leaders agreed a plan to allow euro zone rescue funds to be used to stabilise debt markets and directly recapitalise banks.
Ten-year German yields jumped 13 basis points to 1.64 percent, above U.S. 10-year yields of 1.63, percent in early trade.
The yield spread between 10-year Spanish and Italian debt narrowed 13 bps to 59 bps.
"The market is short of Spain, and traders as a hedge bought Italy against it. And therefore, with Spain now tightening, everyone is trying to cover their shorts in Spain and there aren't many offers," one trader said.
