German – Spanish 10-year spread reaches record 610 basis points
Right now the spread between Bunds and the Spanish ten-year is 609 basis points. The catalyst for the increase in Spanish spreads may be the news that the indebted Spanish regional government in Valencia is on the verge of seeking a bailout from the Spanish government.
Spain has hit the wall. With debt problems at local authorities and banks looming as contingent liabilities for the Spanish government, it is only a matter of time before it succumbs and asks for the European rescue fund to start monetising Spanish sovereign debt.
About Edward Harrison
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.
