Since 5:30am, yields have been steadily rising in Spain and just over the past 40 minutes have spiked again. The 2 yr note yield is up to the highest since late May and just 2 bps from the most since Nov. The Spanish 10 yr yield is up another 5 bps to the highest since May 2000. Spanish stocks are also selling off by 1.4%. STD and BBVA are the two big Spanish banks to watch. I’ve seen no specific news to account for the weakness.

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Adding to my previous note, Italian yields are also spiking with the 2 yr yield up 12 bps to the highest since Dec ’08 and the 10 yr up 5 bps to 1 bps shy of the most since Nov ’08. Italian banks are also down sharply with Unicredit down 5.5% and Intesa down 4.9%. Both banks were down yesterday too after Moody’s put on credit watch 13 Italian banks. Thus, today’s pressure in both Italy and Spain seem to be a carry over from yesterday in that worries are building again in whether the EU can contain the debt crisis around Greece, Ireland and Portugal.

Category: MacroNotes

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One Response to “Spanish Stocks & Yields; look at Italy”

  1. BR, (Peter?)

    surely, others have seen this coming, though..

    Mark E Hoffer Says:

    May 27th, 2011 at 6:12 pm
    Boock,

    re: 9) WTH (heck) with Greece at this point? Hopefully we’ll know next week,…

    you’re, still, asking? I thought “We” ‘covered’ this last Year (?)

    paraphrasing the Point, then: “Fade those Things, they’re heading to 2x-Digitville, in a Hurry..”
    ~~

    Now, Jump to the Head of the Line (if you’re allowed to do so, in ‘Print’)..Fade the S (pain), and the I (taly) in PIIGS…

    Not for Nothing, but You’re Welcome~!
    http://www.ritholtz.com/blog/2011/05/succinct-summation-of-weeks-events-5-27-11/#comment-563711
    ~~

    something tells me that ~”if there wasn’t so much ‘Monopoly Money’, on the Board, this wouldn’t be, nearly, as EZ..