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Anorak | Greece votes and Spain gets it – Spain’s bond yield kills the euro

Greece votes and Spain gets it – Spain’s bond yield kills the euro

by | 18th, June 2012

IT was supposed to be that if the “right” Greek party won the election then the pressure would be off Spain and Italy: for the euro would be saved.

The “right” party in Greece being anyone other than Syriza essentially, as the other two that had even a hope (Pasok and Ne Democracy) have already agreed that they’ll do the right thing and keep Greece paying its debts and in the euro.

So, that happened: New Democracy squeaked past Syriza and the euro is saved! Spain is safe !

That’s Spain’s 10 year bond yield at 7.1 per cent according to Bloomberg’s composite data.

Ooops!

The generally agreed number is that if Spain’s bond yield goes about 7% then Spain’s toast.  For what it means is that as old debts come up for repayment

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Posted: 18th, June 2012 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink