Yields on 10-year Spanish government bonds jumped 9 basis points to 5.83%, surpassing a high of 5.74% reached last week, a level not seen since the start of the European Central Bank’s long-term refinancing operations.
Yields for Italy’s 10-year government bond, also under pressure last week, jumped 15 basis points to 5.5%. That is a level not seen since February.
Keep in mind Italy and Spain’s debt load is MUCH greater than Greece’s problems last year. More European countries own Spanish and Italian debt than Greek debt, so there is A LOT of interconnectedness to how the dominos line up this time.
