RTRS: EURO GOVT-Bunds fall, periphery outperforms on EFSF hopes
Jan 20 (Reuters) - The premium investors demand to hold Portuguese and other lower-rated euro zone bonds rather than German debt fell on Wednesday on hopes that reforms to the region's rescue fund could allow states to buy back their bonds. A euro zone source said the bloc was considering allowing the European Financial Stability Facility (EFSF) to buy back the bonds of member states in trouble as part of a broader response to the sovereign debt crisis. [ID:nLDE70J1DW]
German Bund futures FGBLc1 fell to their lowest since mid-April 2010 of 123.72, down over half a point on the day.
The Portuguese/German 10-year bond yield spread PT10YT=TWEB DE10YT=TWEB fell to 368 basis points, its tightest since mid-December.
