Spain’s Auction Bond Shows Contagion Signs

Spanish Bond auction today saw yields rising. For three month notes, the rate is 1.743%, higher than 0.951% on October 26th. For 6 month notes the yield was 2.111% instead of 1.285% last time. The 3.25 billion euros raised also fell short of the maximum. See more on Bloomberg.

The Irish crisis erupted when investors fled Irish bonds and the yields skyrocketed. We’re not there yet, but these numbers show that fear is growing. Spain may be too big to bail.

Leave a Reply

Your email address will not be published. Required fields are marked *