Despite all the pats on the back from fellow EU political members and reassurances that all will be well with political reforms, 10Y Spanish bond spreads (the additional risk over German bunds that investors demand before lending money to Spain) just hit all-time record highs. At over 580bps, we are now we well above the pre-Euro era highs (remember focus on spread not yield since Bund rates were so different back then). Spain 10Y bond apreads are now 40bps wide of pre-Summit peak levels and 130bps wider than post-Summit kneejerk reaction lows.But look at stocks and we know all is fixed in Europe... (full story)