Yields on the Spanish 10-year have just hit 5.556%.
According to Dow Jones, that’s the highest level since January.
This comes after an unattractive auction of 3 and 4-year bonds.
Spain sold only 2.5 billion EUR vs. a maximum potential of 3.5 billion EUR.
And bid-to-cover (a gauge of total interest) was just 2.41 vs. 4.96 last time.
The auction is taking its toll on other markets, as stocks fall, and yields tick up in Italy as well.
From Bloomberg’s Linda Yueh.
Spain sells EUR2.59bn short of max target EUR3.5bn of 3, 4 & 8 year bonds, demand lower than in March but >2 bid/cover 2.41 vs 4.96 for 3yr
— Linda Yueh (@lindayueh) April 4, 2012
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