UH-OH: Spanish Bond Yields Are Back At Pre-LTRO Levels

This chart showing yields on Spanish 10-year bonds is definitely what you need to watch right now.

Yields on these bonds have been climbing ever since the last of the European Central Bank’s two three-year long-term refinancing operations, and they’re blowing out as mounting concerns about the fiscal position of the country’s banks and regional governments spook investors.

The 10-year has already risen more than seven basis points today to 5.752%—the highest borrowing costs the country has seen since December 14, according to CMC Markets’ Brenda Kelly. Bloomberg’s Linda Yueh also points out that the spread between Spanish bonds and German bunds has also surpassed 400 bps for the first time since that month.

Check out yields on this security over the last six months:

Photo: Bloomberg

Here’s how they look so far today:

Photo: Bloomberg

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