So much for bailing out Spain to avoid contagion! Italian yields up 25 bp on the day while Spain is up 27 bp… EUR/USD slipping further, now at 1.2506. On the wires, Belgian central banker Coene says that the us of ESM funds to bailout Spain would not trigger credit default swaps, owing to the ESM’s preferred creditor status. That’s comforting… (full story)