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French and Spanish bonds rally in auction

FRENCH and Spanish bonds rallied today as did the euro after the governments of both countries sold debt.

The yield, or interest rate, on Spain’s five-year bonds fell to 5.58pc while the yield on France’s 10-year bonds fell to 3.18pc.

Spain raised €3.75bn in the auction while France raised €1.57bn.

Analysts said the focus will remain on sovereign debt adding that the move by central bankers yesterday proved how concerned the were about bank funding.