Italian Sovereign

Italy successfully navigated its planned five year bond auction on Monday morning but any relief on the part of investors is tempered by scepticism over the quality of the sale. French yields rallied but that sentiment may be short-lived, said bankers, as investors targeted Spanish Bonos.

Some form of resolution to the Greek debt crisis could be imminent in a bid to stop contagion as Italian and Spanish govvies cheapened again on Monday morning and EU finance ministers met in Brussels.