Tuesday, July 12, 2011

Club Med Hangover -- Bond yields climbing in Spain and Italy

Nearly a month ago I mentioned rising yields in Spain possibly causing problems.  I underestimated the number of countries. Both Italy and Spain's treasury yields have spiked higher.

None of the charts are pretty.  While Italy was getting most of the headlines for the rate of yield increase please note how Spain's yields are higher.  Any EU country bordering the Mediterranean is having serious problems right now.


  1. Wow, didn't realize how much the CHF is moving against everything else. That's gotta create some serious imbalances in Switzerland however... I wonder how long until they buy up the Spanish / Greek / Italian coastline?