Markets sold off on Friday due to the stronger dollar and Spanish bond yields moving to the highest levels during the current debt crisis. Below is a chart of Spanish 10 year bond yields, which is trading above the psychologically important 7% level. Click to enlarge.
Bottom Line: With Spanish yields moving higher, the whole union could be on the verge of unraveling soon. As Spanish bond yields rise, investors are demanding more interest for the risk of buying those bonds. The US markets have been range bound and holding up well under slowing growth and average earnings reports. Thank you for reading.
