LONDON, Jan 9 (Reuters) - The premium investors demand for holding Spanish government bonds over top-rated peers fell to its lowest in more than three months on Tuesday.
Recent strong economic data from the euro area has boosted sentiment towards European assets, with peripheral euro zone bonds in particular benefiting as investors look to put cash to work at the start of the new year, analysts say.
Spain’s economy grew by around 3.1 percent year-on-year in 2017, in line with the government’s forecasts, Prime Minister Mariano Rajoy said on Tuesday.
The gap between 10-year Spanish and German bond yields narrowed to around 103 basis points , its tightest since September. (Reporting by Dhara Ranasinghe, Editing by Abhinav Ramnarayan)