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Spanish auction falls short – debt crisis comeback?
Since mid 2012, Spain had no problem raising money in markets and yields fell all along the curve. 10 year bond yields fell below US 10 year bond yields and stayed there for a long time. Spain tried to raise a maximum of 3.5 billion euros in the markets and managed to raise only 3.2 billion. In addition, the yield came out at 2.20% after 2.08% last time. This is certainly a sign of stress and a liquidity crunch in markets. Spanish 10 year bond yields are 18 basis points higher, the biggest jump since June 2013.