Spanish and Italian bond yields climb as a disagreement between the IMF and EU leaders over how to deal with Greece's debt heightens tensions in markets. Results of Greece's T-bill auction, due at 1000 GMT, will be crucial to sentiment, given the country has EUR5 billion of short-term debt maturing later in the week. Spanish 10-year yields have climbed over the last few sessions and are edging back towards 6%; they are currently up 4bps at 5.92%. Italy's 10-year yield is up 5bps at 5.06%.

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