Espana, everything under the sun. Soaring 2 year yields as well.
By Peter Tchir. 2 year Spanish yield getting crushed. 60 bps in a day is big,
yet the market seems shockingly calm about it.
Europe is going to have to start using some EFSF money to
support the Spanish front end if the market isn’t going to take
another big leg down. For all the talk about 10 year bonds and
secondary market prices, getting the front end under control is
key. The EFSF 1% bonds of March 2014 are trading at 0.24%
(which seems rich), but Europe is either going to have to step
up and start using money to subsidize near term Spanish
issuance, or it the market will continue to deteriorate on