Spanish bond yields whisker away from 7% danger level

Spain became the new Italy this morning after the yield on bonds it sold at auction reached a 14-year-high of just under 7%.

The country was forced to sell its latest tranche of 10-year debt at 6.975%, the highest amount it has paid since 1997. Spain sold €3.6bn of the new ten-year benchmark bond, with the bond auction only 1.5 times covered. The government was aiming to sell between €3-€4bn of debt. Spanish yields are nearly at the danger 7% level, with the yield on 10-year bonds now at 6.767%, up 0.343% on the day and a euro-era high. Greece was forced to turn to the international community for help when its own bonds started yielding above 7%. Meanwhile, Italian 10-year bonds - which have already s...