Strong auctions push yields low in Spain, Italy (by Sara Sjolin)

LONDON (MarketWatch) -- Yields on 10-year government bonds in Spain and Italy declined Friday amid strong debt sales this week, analysts said. Yields on 10-year Spanish government bonds (10yr_es) fell 26 basis points to 4.67%, while yields on 10-year Italian government (10yr_ita) bonds took off 7 basis points to 5.88%. Italy succesfully sold 16 billion euros in total this week and saw lower borrowing across all maturities. Spain also lowered borrowing costs in a well-recieved auction Tuesday, where the government sold 2.51 billion euros of government debt. "Fast-becoming the trend these days are successful sovereign debt actions across the euro zone. First it was Spain and now Italy. Such enthusiasm has delivered the unthinkable - its bonds have come back from across the Rubicon," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co. in New York.