Credit Markets burning like rome today ..... Greece ten year crosses 26 percent , but eyes should focus on spanish credits as well

http://confoundedinterest.wordpress.com/2012/05/14/med-uncertainty-greek-and-spanish-yields-spike-10-yr-us-treasury-futures-highest-on-record/

Med Uncertainty: Greek and Spanish Yields Spike, 10 Yr US Treasury Futures Highest on Record

14MAY

It’s a tough way to start the week in the Mediterranean. Greece 10 year sovereign debt rose 235 basis points on speculation of a withdrawal from the Euro while Spanish banks Banco Santander and Banco Bilbao Vizcaya Argentaria will set aside 4.5 billion euros ($5.8 billion) to meet a Spanish government order to boost real estate provisions as analysts speculate the industry may need more.

Why boost real estate provisions at Spanish banks? How about a continued collapse of the Spanish housing market in terms of price.

The European Central Bank (ECB) borrowing by Spanish banks jumped 16 percent to a record 263.5 billion euros ($339 billion) in April after lenders tapped emergency loans.

The cost of insuring against a Spanish default jumped to an all-time high.

The Euro (aka, The Gyro) is being cooked on a slow roasting spit.

And the U.S. 10-year Treasury futures rose to the highest on record.

U.S. bank 5 year CDS jumped, particularly JPMorganChase.

European equity markets are down over 2%.

Hot Not fun in the summer time on The Med! At this rate, I doubt that The Fed will be doing QE3 as long as the 10 year yields continues to melt. Unless, of course, China and others say “No Mas!” to buying/rolling over more U.S. debt.