These were the yields and basis point movements of some of the most watched 10 year bonds by the close in Europe:

Spain: 5.69% (-20bp)
Italy: 4.92% (-13bp)
France: 2.27% (+1bp)
Germany: 1.62% (-2bp)
UK: 1.84% (-3bp)
US: 1.79% (-2bp)

Spain appears to be edging closer to formally requesting aid from the European Central Bank to bring down its crippling borrowing costs.

Speaking in Parliament on Wednesday, Prime Minister Mariano Rajoy said without budget cuts, the country would be unable to finance itself.

It's likely those budget cuts, and external oversight, will form part of the conditions imposed by the European Central Bank on Spain if it did intervene to assist the debt strapped country.

The net effect of the noises being made by Madrid is to make Spanish bonds quite attractive again, with the yield coming down 20 basis points on Wednesday.

The corollary for Spain's partner-in-debt-crime, Italy, has been a triumphant dip below 5% on its 10 year bonds. The 5% figure is seen by many as the maximum a major global economy can sustain in the long term.

BS

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