Spain's 10-year bond yields, which move inversely to prices, fell further to 1.69 percent, down 9 basis points on the day and set for their biggest daily fall since April, on the Bloomberg report which, citing sources, said moderate separatists are worried about risks to the economy.

Catalonia-headquartered Banco Sabadell and Caixabank jumped higher, last up 6.2 percent and 4.5 percent respectively.

"The markets, in the last 30 minutes, have begun to believe in a normalisation of the situation in Catalonia," said Stephane Barbier de la Serre, strategist at Makor Capital Markets.