A Day After Moody's Threat, Spanish Banks Falling, Bond Auction Is Dicey

Remember when we used to talk about Greece?

Those were the days. Now it’s all Spain, of course, and the news has yet to turn for the better. Yesterday Moody’s put the country on ratings watch, threatening to take away its AAA tag (a delightfully late move, but whatever).

A day later? Still more ugliness in Spanish financial markets.

The country just floated some 5-year bonds, and basically it was wak, but OK.

From ForexLive:

Bid to cover ratio of 5-year bond 1.70 vs 2.35 previously. Average yield 3.657% vs 3.532% previously.

Meanwhile, Spain’s big bank Santander is selling off, again.

chart

Photo: Bloomberg.com

And of course, the main IBEX 35 index is down a similar amount.

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