Spanish Sovereign Bond Yields Top 6% as Debt Crisis Flares
Spanish bonds lead a slump among the euro-region’s higher-yielding government securities, after a minister from the Iberian nation called on the European Central Bank to buy its debt to stem the financial-market turmoil.
(BLOOMBERG) New York - Ten-year Spanish yields jumped to a four-month high before the nation sells 12- and 18-month bills tomorrow and bonds due in October 2014 and January 2022 on April 19. Italian notes slid and Portuguese 10-year securities declined for an 11th consecutive day. German bund futures rose to a record as investors sought the safest assets.
"Clearly investors are again getting worried that Spain may not be able to overcome its problems without external help," said Elwin de Groot, a market economist at Rabobank Nederland in Utrecht. "One thing that could stop this is ECB intervention but they are not extremely keen on taking that role at this point in time. Sentiment is starting to crumble."