Spain held a bond auction yesterday. The results were poor. Spanish 10 year bond yields closed at 5.71% with Italy at 5.37% and Portugal at 12.35%. So why so bad given the ECB's trillion Euro money printing?
The market thinks the Spanish plans are undeliverable and Spain, the 4th largest Eurozone economy, is headed for a recession and worse bank failures because of the property market collapse. There was a huge sell off today in Euroland equities with all the main markets including the UK down 2% to 3%. Banks were hardest hit with Spanish banks the biggest losers.
Its not over in Euroland by a long chalk.