The rotation from German debt back to higher-yielding Spanish and Italian debt continues this morning, an underpinning factor for the euro.
Spanish yields are falling the most, down nearly 10 bp to 4.93%. Italian 10s are down over 4 bp to 4.16% after a solid auction earlier today.
Falling German debt prices and rising Italian and Spanish prices (falling yields) are one sign that the safe-haven trade is easing, an unalloyed positive for the euro.
