Greek bond yields continued moving higher after Moody's downgraded Ireland's credit rating by two notches to Baa3 while it maintained a negative outlook for the country. Ireland's 10-year bonds yielded 9.5 pct, up three basis points from Thursday, while the 10-year Spanish bonds yielded 5.4 pct.

The 10-year Greek benchmark bond yielded 13.5 pct as speculation over a debt restructuring by Greece continued despite the fact that European Central Bank officials and IMF's head Dominique Strauss-Kahn officially dismissed such scenarios.