Most euro zone government bonds were pushed up by European Central Bank's bets on monetary policy easing this week.

Over the last week, both core and lower-rated euro zone bonds have soared. This improvement came after bets that ECB will be forced to ease the policy in the next few months.

Italy has been shrouded by political tensions over the decision on whether to expel former prime minister Silvio Berlusconi for tax fraud or not. Italian yields fell 4 basis points to 4.08% while Spanish yields fell 5 basis points to 3.97%.

As for the core markets, the German Bund future climbed 10 ticks at 141.95 last Thursday, and its 10-year bund yields dropped 1 basis point at 1.68%. Meanwhile, the Dutch, French and Austrian yields have also dropped.

The ECB has not officially declared an easing since its most recent meeting in October. It is still unclear whether it would decide to cut rates or grant cheap long-term loans to banks.