Despite a strong start, European markets quickly soured to a proposed Spanish bank bailout, accelerating a mid-day sell-off.
Investors are now concerned that aid provided by international bailout funds would subordinate current Spanish bondholders to European lending mechanisms, regardless of the fact that the funds are intended for the banks.
This angst was readily apparent in yields on 10-year Spanish bonds, which serve as a good indicator for perceived long-term stability risk in the real world. They rose a full 29 basis points today to hit 6.51 per cent.
Check out Spanish-10 year bond yields today: