“The spreads on 10-year Spanish bonds jumped to a post-EMU high of 224 basis points above German Bunds as traders brace for a crucial auction by Madrid on Thursday. The relentless rise in bond yields replicates the pattern seen in Greece at the onset of crisis. Spain must raise €25bn of debt in a cluster of auctions in July.”

“We’re in a dangerous and stressful situation,” said Gary Jenkins, a credit expert at Evolution Securities. “Spain is a big enough borrower to wipe out the EU’s rescue fund.”

“The spreads on 10-year Spanish bonds jumped to a post-EMU high of 224 basis points above German Bunds as traders brace for a crucial auction by Madrid on Thursday. The relentless rise in bond yields replicates the pattern seen in Greece at the onset of crisis. Spain must raise €25bn of debt in a cluster of auctions in July.”

“We’re in a dangerous and stressful situation,” said Gary Jenkins, a credit expert at Evolution Securities. “Spain is a big enough borrower to wipe out the EU’s rescue fund.”

Spain and its government have entered a very difficult path. Market´s confidence is lost and 25 B € should be paid in July !!!