Blogging from the Murcia region of Spain until early June, when I return to
the Highlands of Scotland for a few months

'Fair and softly goes far' - Miguel de Cervantes

Thursday, 5 July 2012

Bonds - Italian 10yr spikes above 6%, Spanish rises even higher

Are the wheels coming off the latest Euro-bailout? It looks like it. No surprise, really, as this crisis is unlikely to be solved until some of the weaker economies within the Eurozone are decoupled from the stronger economies - either the weaker currencies must leave or one or two of the stronger currencies must do so. Until that happens, expect this charade to lurch from one crisis to the next!

Italian 10 year bonds spiked above 6% today at 6.016% (from 5.755% at Wednesday's close).

For Spain the situation is even more adverse - although it achieved desired sales on its 10 year bonds, this was at the expense of increasing yields to 6.786% from 6.775% on the secondary sovereign debt market. Average 10 year yields rose to 6.430%% from 6.044% on 7th June, the last comparable sale.

Source: Expatica/AFP

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