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

UK: 1.91% (-0.2bp)
US: 1.81% (-0.5bp)
Germany: 1.63% (-0.8bp)
France: 2.24% (-1.0bp)
Spain: 5.35% (-11.9bp)
Italy: 4.77% (+0.1bp)

[There are 100bp to a percentage point]

Borrowing rates on Spanish 10-year notes declined sharply on Thursday after the Treasury surpassed its targeted range at a bond auction for a second time this week.

Spain issued €4.614bn, topping the high-end of its €3.5-4.5bn target, in medium- and long-term notes. Like the auction on Tuesday (shorter term), borrowing costs fell again as Spain resists pressure to request a bailout. Average yields fell across the board as the Treasury sold three-, four- and 10-year bonds, while demand was solid.

On the secondary market, 10-year Spanish bond yields were down nearly 12 basis points at 5.35%.

Meanwhile, 'safe-haven' bonds gained today as a summit of European leaders kicks off in Brussels. Leaders are expected to discuss several topics such as the bailout for Spain, the situation in Greece and the banking union although only this last item is officially on the agenda. Bond yields in the UK, US and Germany all declined.

Before travelling to the summit, German Chancellor Angela Merkel said that Eurozone leaders should not let up on reforms, especially Greece which must tackle corruption and fulfill its promises.

Merkel said she wanted Greece to remain in the euro but reforms were being implemented at a "snail's pace".

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