Peripheral Sovereign Yields Spike On Spain 'Junk' Rumors

Tyler Durden's picture

Spanish 10Y spreads are now over 50bps wider on the week and the yield pushing back over 6.8% as its spread spikes 10-15bps on rumors of a Moody's downgrade to 'Junk'. The IBEX dropped 0.5% rapidly, now down almost 5% on the week. Italy is catching the cold and is blowing wider in credit and lower in stocks as financials are leading the plunge in both nations.

Italian and Spanish (and Portuguese) bond spreads cracking...

 

Spain's IBEX dropping fast...

 

and Italian banks are leading the plunge...

Charts: Bloomberg