0543 GMT - The rise in intra-eurozone government yield spreads over German Bunds--a consequence of poor fiscal positions in, for example, in France, Italy and Belgium--is justified by fundamentals, Capital Economics' Thomas Mathews says in a note. "That puts those countries' bonds in a tough spot," the head of markets, Asia Pacific, says. "We think that ongoing heavy [bond] issuance and upcoming elections will mean spreads in France and Italy, at least, could widen further over time," he says.