Milan, February 28 - After devastating losses on financial markets amid political chaos earlier in the week, Milan's major stock index continued to recover some lost ground on Thursday. On the Milan Stock Exchange, the FTSE MIB gained 0.59% in trading to end the day at 15,921 points. Analysts said that investors were beginning to accept the fact of political uncertainty, following inconclusive Italian elections earlier in the week. The banking sector continued to struggle with the prospect of rising borrowing costs, the price of political uncertainty. However, one bank - troubled Italian lender Monte dei Paschi di Siena (MPS) - climbed by 2% at one point on Thursday after the bank confirmed it had successfully issued 4.07 billion euros in so-called "Monti bonds". That came as part of a government-backed bailout for the bank after it failed to meet the capital requirements set by the European Banking Authority. The bond issue was fully purchased by Italy's Treasury, MPS said. MPS was generally outperforming other bank stocks Thursday, with shares in other leading lenders Mediobanca, Intesa Sanpaolo and Unicredit slightly lower or flat. Meanwhile, the spread between Italian and German debt, an indicator of investor confidence in Italian government paper, narrowed slightly to 327 basis points at close of trading Thursday, a slight improvement from the 336 basis points spread reported on Wednesday. The yield on 10-year Treasury bonds also relaxed slightly to close at 4.73%, down from 4.81% the day before. Other European equity markets also ended on a positive note. Frankfurt's DAX gained 1.04% to reach 7,753.32 points, while Paris's CAC 40 rose by 0.90% to close at 3,723 points, Spain's IBEX 35 closed trading 1.31% higher at 8,243.60 points while London's FTSE 100 ended the trading day 0.55% higher, closing at 6,360.81.