MW: Yields for Spanish, Italian bonds spike higher
By Barbara Kollmeyer
MADRID (MarketWatch) -- The yield on Spain's 10-year bond yield spiked above 6.7% on Tuesday, taking out highs reached last November. The yield ES:10YR_ESP +4.08% shot up 28 basis points in late afternoon trading, to 6.81%, according to Tradeweb. That is the highest level on record according to Tradeweb charts, which go back to 2008. The yield on Italy's 10-year government bond IT:10YR_ITA +2.81% jumped 23 basis points to 6.27%. As bond yields spiked, European stocks turned lower across the board. Yields for Spain have been under fresh pressure this week due to disappointment over the bailout plan for the nation's banks. Italian yields have been moving in lockstep, with concerns as well that that government may need a bailout at some point.
