In terms of sales of government bonds, Italy and Spain benefited from Greece securing its new bailout.
The amount of interest Rome and Madrid had to offer to get investors to buy fell on Tuesday.
In the case of Spain, it was able to sell new short-term debt at the lowest cost in over two years
However the relief rally in lower-rated debt was likely to be short-lived on worries over Athens’ ability to implement strict conditions.
“There’s still a lot of implementation risk. It will give risk a short-term relief rally till the next hurdle,” said one trader
Yields on ten-year Portuguese bonds initially rose then eased, however there are still fears among investors that Lisbon may be next in line after Athens to seek another international bailout.
Italian 10-year government bond yields fell 11 basis points to 5.37 percent while equivalent Spanish yields were eight bps lower at 5.09 percent but traders said much of the news on Greece had already been priced in.