Fear of default and/or the collapse of the Euro is driving current yields. However, a look at long term history reveals that Spain has had numerous other panic driven yield spikes. Their 10yr Bond yield reflected investor fears in 1820, 1831, 1834, 1851,1867, 1872, 1882 and 1936.
Déjà vu ?
Source: Global Financial Data
Thanks, Ralph !
Ralph Dillon firstname.lastname@example.org