Courtesy of Mish.
The selloff on Spanish and Italian bonds continued today with yields in Spain hitting euro-era record highs.
On the deficit side of matters, I do not believe Spain will meet its budget-deficit targets, and neither does Fitch.
Fitch Managing Director Ed Parker said Spanish Prime Minister Mariano Rajoy will miss budget-deficit targets this year “by a substantial margin.” according to a Bloomberg report.
10-Year Spanish Bond Yield Hits Record High
The previous euro-era 10-year Spanish Bond Yield high-water mark was 6.7%. That record was shattered today with a rise to 6.83%, closing at 6.7%, right at the previous high. The yield closed up 20 basis points (.2 percentage points).
Yields Climb in Italy
10-Year bonds in Italy were hammered as well, with the yield climbing as high as 6.3% before settling at 6.17%, up 14 basis points.
Emperor Has No Clothes Moment …
