Yields and basis point (bp) movements of some of the most-watched 10-year bonds this afternoon:

UK: 1.85% (+1bp)
US: 1.68% (+2bp)
Germany: 1.43% (+2bp)
France: 2.17% (+2bp)
Spain: 5.70% (-9bp)
Italy: 4.84% (-1bp)

[NOTE: there are 100bp to a percentage point]


In spite of Eurozone finance ministers delaying a decision last night on the next tranche of Greek aid, the long-term view is that a deal will eventually be struck, causing 'safe-haven' bonds of the UK, US and Germany to decline on Wednesday as investors' risk appetite increased.

The Eurogroup on Tuesday night was unable to thrash out an agreement on how to finance a two-year extension in Greece's commitments. "I don't know when [the aid disbursements] will happen," said Eurogroup head Jean-Claude Juncker after the meeting in Brussels. "Greece has delivered, now it is up to us."

Market analyst Michael Hewson from CMC Markets said: "Disappointment appears to have been tempered somewhat by expectations that EU leaders will, in the final analysis, agree something next week on November 26th, and ultimately unlock the extra money that Greece needs to keep funding itself."

German Chancellor Angela Merkel has said she is confident the issue will be closed at Monday's Eurogroup meeting.

These optimistic comments saw bond yields in Spain retreat today to its lowest level in nearly two weeks.

Markets were also preparing for Thanksgiving tomorrow, with the US Securities Industry and Financial Markets Association recommending a full market close and an early close on Friday.

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