LONDON, March 13 Spanish government bond yields
trimmed falls on Monday, pushing the gap over German peers
marginally wider, after Scotland's first minister demanded a new
independence vote, raising concerns about breakaway risks in
other parts of the euro zone.
Catalonia, in the northeast of Spain, has been seeking
independence, and its leaders have vowed to move ahead with
another referendum on secession in September.
Spain's 10-year government bond yield trimmed falls to stand
marginally lower at 1.87 percent, underperforming
most of its euro zone peers. Italian equivalents were down 2 bps
and Portuguese yields fell 6 bps .
The Spanish/German yield gap widened to around 142 basis
points from around 140 bps on Friday.
Analysts said the move coincided with Scottish First
Minister Nicola Sturgeon demanding a new independence referendum
in late 2018, which at the margin was putting the focus on Spain
and breakaway risks it faces from Catalonia.
"There is always a link between the Scottish referendum
risks and what the region of Catalonia is doing," said DZ Bank
strategist Daniel Lenz. "And it does appear that the Scottish
referendum news has had a little bit of an impact on Spain."
(Reporting by Dhara Ranasinghe, editing by Nigel Stephenson)