Spain-AAA Spread Just Broke 450 bps: LCH Margin Hike Alert

Why is 450 bps important? That is the threshold (as explained before here and here) beyond which LCH goes all medieval on one's bond holdings.

Either the ECB gets involved here, and fast, and activates the SMP emergency bid, or else the central bank is sending a very loud signal to the country which is now betting Draghi will keep quiet as he accepts Spanish bonds in repo pledged by Bankia.

A signal which is bad to quite bad for those in the cheap seats.