WOW: It's A Landmark Day For European Sovereign Bonds

It’s a landmark day for European sovereign bonds, with Spanish and Italian yields soaring.

The latest big news: the spread between Italian 10-year bonds and German bunds of the same maturity just hit 400 basis points. Yields on those bonds are up 23 basis points to 5.68 per cent. It’s market is tanking fast, now down 5 per cent.

According to Bloomberg’s Linda Yueh, German 2-year bunds have also fallen below Japanese bonds for the first time ever, yielding 0.109 per cent. This suggests that investors are dashing like mad for safe havens.

Meanwhile yields on Spanish 10-year bonds are up 22 basis points to 5.77 per cent.

A look at today’s carnage in Spanish 10-year yields…

Photo: Bloomberg

UPDATE: And Spanish 10-year yields just hit 6.00%. That’s a rise of 25 bps today alone.

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