Another round of successful eurozone government bond auctions, plus further positive US earnings and economic news, helped risk assets maintain their upwards momentum.
But lingering uncertainty about a Greek debt restructuring, plus growing concerns that Portuguese assets were showing increasing levels of stress, helped keep a lid on the day’s price action.
There was much relief in the markets that borrowing costs fell at closely watched auctions of Spanish and French government bonds. Madrid sold a total of €6.6bn of debt, much more than its target range, while Paris sold €8bn of medium-dated bonds in its first auction since being stripped of its triple A credit rating by Standard & Poor’s.