The positive sentiment seen on the European periphery since the European Central Bank meeting at the beginning of the month went into reverse yesterday, after Spain appeared to question the timing of a bailout.

The worst moves were in Spanish sovereign debt, with the 10-year bonds closing 19 basis points wider at 5.95% and the three-year 25bp wider on the day at 3.98%. According to Bloomberg that trend continued this morning, with the 10-year benchmark seen at 5.98% and the three-year at 4.07%.