Core eurozone sovereign debt rallies after key auctions

Key eurozone sovereign debt yields have fallen sharply after successful debt auctions and comments from ECB president Mario Draghi boosted investor confidence.

Italian 10-year bond yields have fallen back below the 7% mark, dipping under 6.8%. The 10-year yield on French government bonds also dropped to 3.15% after the beleaguered country auctioned bonds at a yield of 3.18%, down from 3.22% in November. A well-covered Spanish debt auction also helped Spanish 10-years extend gains made earlier as Draghi spoke with benchmark yields falling from 6.3% to 6%. Draghi suggested a more concerted response to the crisis could be on the cards, saying closer fiscal integration between eurozone governments could prompt "other elements" to follow. In t...