Caution despite bond sale success

SPAIN and Italy exceeded expectations in raising short-term money in abundance and at much reduced rates on the markets.

However analysts warn this should not be read as a sign the eurozone crisis is easing, but rather that ECB intervention is showing some signs of success.

Reflecting continuing fears, European Commission president Jose Manuel Barroso said that more has to be done in terms of creating firewalls to prevent contagion spreading even wider through the eurozone.