Spanish 10-year bond yields stayed above 7% throughout last week, and extended even higher to start this week during the 7/23 Asian-European session. It hit as high as 7.565 establishing a new Euro Area record and reflecting the market’s fear of the fallout from the Spanish debt crisis.
The bailout resolution from the EU summit last month had complications from the start, and continues to be at an impasse. Refer to the article link below. Trouble With Spanish Bailout Destabilizes Europe
Meanwhile Italian 10-year bond yields reached 6.426 during the European session, also approaching the danger level of 7%.
We are definitely starting the week on a risk-off note with the euro at the epicenter.