The Most Important Chart In Europe Is A Disaster

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		Tech Science Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Law International Video Latest Thursday, July 5, 2012 The Most Important Chart In Europe Is A Disaster We've been talking a lot about what we think is the most important chart in Europe—yields on Spanish bonds that mature in less than three years. (High yields mean Spain is paying through the nose to borrow when it needs to roll over its debts.) In two operations beginning in December, the European Central Bank loaned Spanish (and Italian) banks tons of money at low interest rates with the hope that they would buy domestic sovereign bonds, which would lower these yields. Higher yields on bonds with maturities of less than two years, however, indicate that investors are increasingly doubtful of Spain's fiscal health despite the ECB's assistance. Click this link for our full explanation > These shorter-term borrowing costs fell in the wake of the EU summit, but this move has completely reversed. Yields on two-year Spanish notes rose a dramatic 52 basis points today to 4.61 percent: Italy has been under slightly less pressure than Spain recently, but yields on bonds there are higher too. The 10-year is up 22 bps, having crossed the important 6 percent benchmark. Two-year yields closed at 3.73 percent today, up 29 bps. Read » Also On Money Game Today: Here Are 8 Interesting Stats About Stocks And US Presidents REPORT: Greece Gives Up Immediate Plan For Getting New Bailout Terms Technical Chart Shows Major Opportunity Betting On A Gold Price Collapse CITI: 'The Horns Are Growing Back For This Resurrected Bovine' Advertisement CHART OF THE DAY: One Of Our Favorite Indicators Shows The Market Might Be Nearing A Turning Point CHART OF THE DAY: The Last Time New Orders Collapsed Like This, It Was Right After 9-11 CHART OF THE DAY: The Most Important Chart In Europe Just Had Its Best Day Since 1993 Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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