Commentary
Not looking good in Spain and Italy
14 June 2012 by Jim Fickett.
From the Financial Times:
the yields on benchmark Spanish 10-year bonds climbed above 7 per cent, a level seen as unsustainable by analysts. …
The jump in Spanish yields – a barometer of investor unease – compounded the country’s financial woes after Moody’s downgraded its debt rating to near “junk” status. It came amid fears that further ratings downgrades could force more holders of highly rated debt to dump Spain’s government bonds. …
The Italian treasury sold €3bn of three-year bonds at a yield of 5.3 per cent, up from 3.91 per cent at the last auction on May 14 and the highest paid since December.
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