MARKETS ARE CRATERING: SPAIN DOWN 3.7%, ITALY DOWN 2.1%, DOW FUTURES OFF 113

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Scroll to bottom for updates.European shares are generally higher, but Spanish stocks are cratering, down 2.2 per cent after yields on 10-year bonds rose past 6 per cent for the first time since April 27.

The spread between Spanish 10-year bonds and German bunds of the same maturity is at its highest since November 28 (via @LemaSabachthani).

This follows a negative Asian session, where the Nikkei fell 1.5 per cent and the Shanghai composite closed down almost 1.7 per cent.

U.S. futures are lower, point to a slightly negative open. We’ll see which way these move in the next few hours of trading across the pond.

UPDATE: In the few moments since the Spanish 10-year crossed 6 per cent, European markets have turned around and are moving into the red. Spain is now down over 2.6 per cent.

UPDATE II: Spain is now off over 3 per cent! Yields on the 10 year are holding steady at 6.03 per cent, and the spread between Spanish and German borrowing costs stands at 451 bps.

UPDATE (6:40 AM ET): This is turning into a major rout. Spain is now off 3.5 per cent, Italy is down 1.9 per cent, and Dow futures are now down 100 points.

The latest headline is that German MPs are beginning to believe that Greece should be able to exit the euro if it wants to. Otherwise, the negative momentum here just appears to be compounding.

UPDATE (9:10 AM ET): Spain just keeps getting worse! Now it’s off 3.7 per cent, and yields on German bunds just hit an all-time low at 1.50 per cent. Italy is also down over 2 per cent.

NOW READ: This Is The Chart That’s Causing Spain To Get Clobbered Today >

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