European bond yields push higher after Spanish inflation data

Yields move up as core inflation in Spain vindicates ECB hawkishness

10-year German bond yields +6.5 bps to 2.310%
10-year Italian bond yields +11.1 bps to 4.337%
10-year Spanish bond yields +5.1 bps to 3.339%

The move also resulted in a brief spike in the spread between 10-year German and Italian bond yields, to 205 bps - the widest in nearly four weeks. In turn, the data is likely to keep equities more on the defensive side today as we are seeing a further dribble lower in regional stocks and US futures to start European morning trade.