We advised readers that Spanish 10-year yields are surging today, but the crisis has now reached an entirely new level.
The Spanish Treasury auctioned €3.562 billion (nearly $5 billion) in new 10-year bonds this morning at a MAXIMUM YIELD of 7.088%!
To put this in perspective, Spain's last 10-year auction on Oct 20th saw a maximum yield of 5.5%.
10-year auctions with maximum yields above 7% are clearly not sustainable.
PRINT or vaporize the TBTF banks such as The Squid & The Morgue.
The Spanish Treasury on Thursday sold €3.562 billion ($4.79 billion) of benchmark 10-year paper at a maximum yield of 7.088%, which was the highest yield paid since the euro's inception. The bond represents a new series, therefore yields cannot be directly compared to results of a prior-10-year auction, the Treasury said. On Oct. 20, the Treasury paid a maximum yield of 5.5% on April 2021 bonds