Italy might not be the only one in trouble.
Yields on Spanish bonds are heading through the roof today with yields on 10-year bonds topping 6% for the first time since early August, just before the European Central Bank started buying its sovereign bonds on the secondary market.
While Spain has more manageable total public debt than Italy and better prospects for GDP growth, its government is far from running a budget surplus as does its counterpart in Rome.
It may be time to remember that there is an “S” in PIIGS.
Check out rising yields on Spanish 10-year bonds this morning: