European equity markets have slumped in afternoon trading as Spanish 10-year bond yields approach record highs once again.
Yields on Spanish 10-year debt rose to 7.25%, close to the euro-era record of 7.3%, as thin trading weighed heavily on risk assets. The spread between Spanish and German 10-year debt passed 600bps for the first time to reach 607bps. Those moves came after yesterday's Spanish debt auction saw borrowing costs soar for two, five and seven-year debt. Today's bond market action has seen so-called safe haven bonds including US treasuries, German bunds and UK gilts resume their upwards momentum. Equities, by contrast, were under severe pressure across the continent, erasing the mildly pos...
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