Spain's Latest Bond Auction Was Ugly

Spain's government just sold a bunch of short-term debt this morning. But, demand was way down and borrowing costs were much higher than in an auction for similar debt a month ago. 2-year bonds sold for 5.3%, up from 4.48% last month.

5-year bonds sold for 6.54%, up from 6.19% last month.

7-year bonds sold fo 6.798%, up from 6.19% last month.

Here's an intraday look at the the Spanish 10-year yield, which just spiked above 7% again.  Not good. 

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