The "markets are telling us that they're unconvinced by the bank bailout and that the next step is that the government will have to concede, capitulate, and go for a sovereign loan"
- James Stewart, head of macro research at AX Markets
Yields on 10-year Spanish government securities rose on Thursday to the highest level since the creation of the single currency union. Yields climbed to 6.91 per cent at the close of the trading session.
The "markets are telling us that they're unconvinced by the bank bailout and that the next step is that the government will have to concede, capitulate, and go for a sovereign loan," James Stewart, head of macro research at AX Markets in London, said.
"That seems to me quite likely, and even now I think it's moving on from Spain to Italy."
European stocks extended losses the same day. The Stoxx Europe 600 Index erased 0.30 per cent to 241.84. Germany's DAX Index declined 0.23 per cent and France's CAC 40 Index lost 0.08 per cent.
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