Blogging from the Highlands of Scotland until I return to the Murcia region of Spain in early October for a few weeks
'Fair and softly goes far' - Miguel de Cervantes

Monday, 11 July 2011

Spanish bond yields hit highest level since 1997

AFP is reporting: "Spanish 10-year bond yields rose above 6.0 percent in late trading on Monday, the highest level since 1997, on concern that contagion from the eurozone debt crisis could spread to Spain." - full story here. Bond yields on shorter 2 year bonds are also rising.

Altogether very worrying - the Spanish economy is a lot bigger than those of Greece, Portugal and Ireland. The seemingly worsening fiscal situation in Italy is also exceptionally worrying. If Spain or Italy 'go west' then the Euro in my opnion will be unsaveable, whatever the political desires of the Germans and French authorities in the the face of both their own electorates' growing disquiet and their own (in the case of Germany at least) very deep pockets.

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