- Christian Reicherter, an analyst at DZ Bank AG
Spanish 10-year bonds fell, pushing yields above seven per cent, after Greek elections failed to convince investors that lawmakers will be able to solve the debt crisis.
"The spotlight is now back on Spain," said Christian Reicherter, a Frankfurt-based analyst at DZ Bank AG.
"The market is worried about the bad loans at the Spanish lenders, which is pressuring the bonds. This goes to show that the European debt crisis isn't solved and we expect bunds to remain well supported."
European stocks closed mixed on Monday. The Stoxx Europe 600 Index gained 0.06 per cent to 244.36. Germany's DAX Index edged higher 0.30 per cent while France's CAC 40 Index fell 0.69 per cent.
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