Another day, another new record for Spanish 10 year yields – 5.15% at the time of writing, already higher than the peak at the height of the Greek crisis. This reflects fear that Spain may be unable to pay its debt, as contagion spreads.
Yesterday, a bond auction by Iberdrola, a big Spanish power company was frozen.
And beforehand, a government auction for short term notes came out with yields that were double the previous month.
Bloomberg reports that Spanish foreclosures may triple in 2011. Lots of trouble in Spain…
EUR/USD is at 1.3290 at the time of writing, still within the range and above yesterday’s lows. Significant support appears at 1.3267, followed by 1.3114.
Update 14:00 – Spanish 10 year bond yield reached 5.20%.
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