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

Spain: 5.74% (+7bp)
Italy: 5.1% (+5bp)
France: 2.29% (+2bp)
Germany: 1.59% (+3bp)
UK: 1.82% (+1bp)
US: 1.73% (+2bp)

There are 100 basis points to a percentage point

Debt markets adopted a cautious approach on Tuesday as the news everyone is waiting for, a formal request for aid by the Spanish government to the European Central Bank, failed to materialise.

The debt-strapped country's Deputy Prime Minister, Soraya Saenz de Santamaria, said today the administration needed to know the amount of Spanish debt the ECB was prepared to buy before requesting official aid.

To many this sounded like a bargaining tactic, with Spain's politicians anxious over the extent of budget cuts they would be required to make in exchange for debt purchases.

Both Spain and Italy sold short term debt today at interest rates higher than a similar auction at the end of August.

The International Monetary Fund didn't help matters by releasing forecasts for global growth showing expansion slowing this year to 3.5% before accelerating to 3.9% in 2013.

BS

Related share prices