Source: Bloomberg
The above chart shows 10 year Spanish bond yields hitting record highs overnight…this intense acceleration of yields (or sell-off) is a pretty strong sign this Euro-Sovereign crisis is a long long way from over. Expect more volatility in sharemarkets yet as Spain carries more risk to Europe and the Global Economy than Ireland does given it comprises around 13% of European GDP…its unemployment is still around 20% and Spanish bank’s balance sheets must be under a fair bit of pressure so hang on for the upcoming ride of economic fear in markets and newspapers.