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

UK: 1.90% (+2.4bp)
US: 1.80% (+3.3bp)
Germany: 1.62% (+2.4bp)
France: 2.232% (+2.1bp)
Spain: 5.496% (+12.3bp)
Italy: 4.767% (-0.7bp)

[There are 100bp to a percentage point]

US Treasury yields advanced on Monday afternoon ahead of yet another presidential debate this evening and a bond auction tomorrow.

With President Barack Obama and Republican Mitt Romney tied at 47% in the poll, investors "won't commit too much capital going into the elections", Jim Vogel, head of agency-debt research at FTN Financial, told Bloomberg.

Markets are also preparing for a series of bond auctions that kick off tomorrow. The Treasury is looking to offload $99bn of two-, five- and seven-year bonds this week.

Meanwhile, Spanish bonds declined, causing borrowing rates on the secondary market to rise the most in a week, on speculation that Spain could further delay requesting a bailout.

A decent outcome for Spanish Prime Minister Mariano Rajoy at the regional elections at the weekend suggests that "the government there doesn't quite face the challenging and difficult opposition by the public that we expected," said market strategist Ishaq Siddiqi from ETX Capital..

BC

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