On Tuesday Spanish borrowing costs for
10-year notes increased 9 b.p. to 5.88%. Today Spain is going to auction securities
with maturities 12 and 18 months. Italian 10-year bonds followed their Spanish
peers and added 13 basis points to 6.66%. German bonds also declined as their
10-year yield gained 4 b.p. EFSF plans to auction 3-month bills worth €2bn.