Euro Bond Spreads Reach Record Level

The spread between Spanish and Italian bonds compared to the benchmark German bonds, jumped to 5.7 percent this morning. This is a difference of 3.05 percentage bonds and indicates how great a premium is required to entice buyers for debt issued by Spain and Italy.

Late last night, Portugal’s central bank said that Portugal faces an “intolerable risk” if the government fails to implement the spending cuts outlined in its so-called “austerity” budget approved last week.

Source: BBC News

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