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

UK: 1.81% (+5.6bp)
US: 1.71% (+4.3bp)
Germany: 1.55% (+7.4bp)
France: 2.20% (+5.6bp)
Spain: 5.77% (-5.0bp)
Italy: 4.92% (-6.6bp)
Greece: 17.60% (+5.4bp)

[There are 100 basis points to a percentage point]

Improving newsflow in the Eurozone and increased risk appetite saw the relatively 'safe-haven' bonds in the UK, US and Germany decline on Tuesday afternoon.

Meanwhile, bonds in Spain advanced after the Treasury saw solid demand at a short-term bond auction this morning admits expectations that the country is ready to request a bailout. The Treasury raised €4.86bn, topping the high-end of its €3.5-4.5bn target. Demand totalled €13.654bn overall, while yields edged lower.

Market analyst Craig Erlam said today: "There have been suggestions recently that Spain could officially make the request as early as this week. If the EU leaders can sign off a Spanish bailout and the next Greek bailout payment at this summit [which starts on Thursday] it would come as huge relief in the markets, with the contagion in the eurozone one of the biggest threats to the global economy."

US Treasury yields declined further after consumer prices rose 0.6% in September, ahead of the 0.5% gain expected by economists.

Meanwhile, inflation figures in the UK fell to their lowest level in nearly three years. Bank of America Merrill Lynch strategist John Wraith told Reuters: "Inflation numbers were in line with expectations, which on one level doesn't mean very much but on another level probably hardened more expectations of more QE being announced in November."

German bund yields were at a three-week high today after two officials said that Germany was considering a precautionary credit line for Spain.

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