UK banks rebound to lift FTSE

UK banks were making solid gains early this morning, lifting the wider FTSE 100 index, having been sold-off yesterday on eurozone fears.

Barclays, Royal Bank of Scotland and Lloyds were up 3.44%, 1.53% and 1.35% respectively early on, reversing losses seen Monday. The move helped lift he FTSE 100 up 0.4% or 25 points, to 5,689. Yesterday banks were hit as investors fretted over the crisis in the eurozone, with Spain the latest country in the spotlight after the yields on its bonds spiked above 6%. However, this morning they were back down marginally following a successful auction, trading at 5.976% having yesterday hit the highest level since December. The real test comes later this week, with auctions of of debt...