Bond yields are all over the shop on Wednesday after yesterday’s buyer strike.

The yield on the sovereign’s 10-year bonds can’t seem to stop flirting with 7 per cent no matter how inappropriate unsustainable it is. It’s not even a 20-year old model yield, for goodness sake!

And it would seem that since Italy’s yield has been unwell, Spanish yields have sneezed (again):

Especially since the two sovereigns are too big for the EFSF to bailout. But Europe’s bailout fund has itself seen the spreads on its bonds widen:

And there are jitters about the second biggest “AAA” standing behind the fund anyway (France):

And Belgian yields have also been widening in… sympathy?

Just kidding.

Related links:
Europe loses gains as debt fears linger - FT
Sovereign CDS soar for big eurozone countries – FT
Is Basel 2.5 hitting the bond market? - FT Alphaville

This entry was posted by Lisa Pollack on Wednesday, November 16th, 2011 at 14:59 and is filed under Capital markets. Tagged with EFSF, Italian bond yields, Sovereign crisis, Spanish bond yields. Edit this entry.