According to CMA Datavision, credit default swap spreads for Greece, Spain and Portugal are at new highs. Greece: 855 basis points (bps), Spain: 255 bps, Portugal: 397 bps.
Spanish and Portuguese bonds sold off today despite efforts by governments to convince markets that Greece financial concerns wouldn’t spill over into other nations. Spain’s prime minister recently described the prospect of a Spanish bailout as ‘complete madness’.
The Spanish 10-year government bond is yielding about 4.18%, which is far less than that of Greece, but substantially higher than it yielded just a few months ago when it was in the 3.8% range. Stock markets in both countries fell as well. Spain’s main index is down just over 1% while Portugal’s is down 3.8%.
Crisis contagion appears to be happening, regardless of what governments may say.