European markets tanked today and Italian and Spanish bond yields went crazy, amid renewed panic about Europe.
A quick look at the carnage:
CAC 40: -3.08%
FTSE 100: -2.24%
IBEX 35: -2.96%
FTSE MIB: -4.98%
Unsurprisingly, Italy was the focus of this storm.
Stocks tanked in tandem with sovereign fixed-income. The major headlines:
- Spanish 10-year government bonds momentarily hit 6 per cent.
- Italian 10-year bonds to German bunds spreads passed 400 basis points.
- Treasuries and bunds returned to safe haven status, with Treasury yields falling below 2 per cent.
- German two-year yields falling below Japanese yields for the first time ever.