Early in US trade, Spanish yields were a basis point or two lower in yield.
As the morning has worn on, we’ve begun to move up in yield again, now at 6.40%, up 7 bp on the day.
Finland’s demand for collateral as well as reluctance on the art of the Finns and the Dutch to let the ESM buy sovereign debt in the secondary market are not helping. A general risk-off attitude is not helping as well.
It would be very tough for Spain and Italy to service their debts if we tumbled into a global recession…