by John Galt
May 9, 2012 19:45 ET
The latest from Ambrose Evans-Pritchard in tonight’s U.K. Telegraph highlights the sense of panic the European credit markets are reflecting behind the scenes:
Spain nationalises Bankia as euro crisis escalates
How bad is it? Amborse hits the high point in this one portion of the story:
“The Spanish have denied until now that there was any need for fresh capital so it comes as a surprise. It wasn’t intended, and that is a worry,” said Guy Mandy, credit strategist at Nomura.
Yields on Spanish 10-year bonds jumped above 6pc on Wednesday, pushing spreads over German Bunds to the danger line above 450 points. Spain’s IBEX stock index fell 2.8pc, hitting its lowest level since 2003.
But don’t worry:
“It’s contained.”
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