Peripheral bond yields rise ahead of the ECB's rate decision and Spain's bond sale. The ECB is widely expected to cut its key interest rate at 1145 GMT. The sale of up to EUR3 billion of 3-, 4- and 10-year Spanish bonds, which closes at 0830 GMT, will test the post-EU summit tightening in peripheral spreads. A challenge by Finland to the removal of seniority from ESM loans to bail out Spanish banks, as well as the tightening of ECB collateral rules, has already helped take some of the gloss off the peripheral rally, Societe Generale says. The Spanish 10-year yield is 10bps higher at 6.45%, and Italy is up 6bps at 5.80%.
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