Markets have rebounded and a significant eurozone bond auctions has been amply covered as financiers get over Monday's warning of a possible downgrade by Standard & Poor's. Greece is also in celebratory mood over the euro – things might be looking up.

A well-covered German bund auction this morning set the tone for the rest of the day. Some €5bn of five-year bonds were sold, with the national bank only taking €1bn of them. A much better outcome than last week's sale, which saw the Buba buying almost half of the issuance.