The €100bn flop - Spanish yields soar despite bailout

Spanish Prime Minister Mariano Rajoy hailed the rescue package as a victory for the government, but the plaudits were short-lived, with bearish traders quickly turning on Spanish and Italian government debt. By 13:20pm, the yield on benchmark 10-year Spanish debt was 23 basis points higher at 6.4%, while Italian yields were up around 6%, hitting week highs. Yields on safe haven bonds were also marginally higher, but not enough to prevent spreads widening, with German bunds up 0.015% at 1.331%, and UK gilts up 0.019% at 1.654%. Yields climbed as Rajoy declared the €100bn bailout a '...