Thursday, June 14, 2012

Spanish 10-Year Bond Yield Hits 6.96%, a New Euro-Era High; 2-Year Bond Yield Hits 5.19%

A big selloff in Spanish government bonds is underway this morning at 3:15AM central. Conditions can change by the US equity market open, but the results are currently very ugly.

At the time of this writing, the yield on 2-Year Spanish Bonds is 5.12% (up 20 basis points) having soared as high as 5.19% (at that time up a whopping 27 basis points).

The yield on 10-Year Spanish Bonds is 6.96% (up 20 basis points), having hit a euro-era high of 6.90%.

The European bond market is coming unglued fast. It will be interesting to see if ECB president Mario Draghi steps in, and with how much "firepower".

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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