Saturday, 21 July 2012

Spain bailout approved, yields hit record highs

Spain's bailout was formally approved by eurozone finance ministers on Friday.

However, Spain's 10-year yield rose again on Friday to 7.27 percent as the region of Valencia announced that it was preparing to seek a rescue and the Spanish government abandoned its forecast for a return to growth next year. Spain's five- and 30-year yields touched euro-era record highs.

Stocks finally succumbed to selling on Friday. The S&P 500 fell 1.0 percent while the STOXX Europe 600 fell 1.4 percent.

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