Monday, May 14, 2012

Spanish and Italian Bond Yields Increase

by Calculated Risk on 5/14/2012 08:54:00 AM

From the WSJ: Global Stocks Hit by Greece Worries

Worries about what a Greek exit would mean for other euro-zone nations with hefty deficits pushed yields on 10-year Spanish government bonds above 6% to the highest levels seen since December.
Here are the Spanish and Italian 10-year yields from Bloomberg.

The Spanish yields are at 6.3%, the highest level since last November. Compared to the German yield, Spanish borrowing costs at euro-era high:
Spreads on Spanish 10-year bonds over German Bunds hit a euro-era high of 486 basis points, surpassing the record hit last November. Yields on Spanish benchmark debt reached 6.30 per cent while German 10-year Bunds were at an all-time low of 1.44 per cent.
excerpt with permission
The Italian yields are at 5.74%, the highest level since January.

The US 10-year yield is down to 1.78%, close to the record low of 1.7% last September.