This sounds like another "not if, but when" problem for the Spanish economy. The immediate focus today is on Greece but if this bond sale is any indication, Spain may be the next concern. The problems in Greece, Ireland and Portugal will be minor compared to Spain due to the size of the economy. CNBC:
"The last thing that financial markets needed this morning was a wobbly Spanish auction, but that’s exactly what they got. Spain’s borrowing costs have soared, with 10 year Spanish government bond yields jumping a massive 20bps at one point," said Riddell in a research note Thursday.
"One bank reported zero buying interest from their clients, and with the auction not well placed, dealers have been selling into the market," Riddell added.
"It’s difficult to focus on the long term when there’s such a big short term risk of a horrible air shot as the authorities collectively try to kick the proverbial can," he said.
