Grexit, Spanic, Itank …

A week is a long time in politics, it’s even longer in economics. A week ago, before the 100 billion euro bailout package for Spanish banks, 10-year bond yields were as high as 6.84%—by way of comparison, Germany’s bond yields, also rising as the European contagion fear rises, are still at 1.5%. Today, with the markets realising the deal may not mean much as the resultant hike in Spanish debt may just force Spain out of bond markets and force it to borrow from its banks, 10-year yields are 6.93%, even higher than they were before the 100 billion euro package.

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