Shares plummet as Spanish spreads hit record high

European equity markets have slumped in afternoon trading as Spanish 10-year bond yields approach record highs once again.

Yields on Spanish 10-year debt rose to 7.25%, close to the euro-era record of 7.3%, as thin trading weighed heavily on risk assets. The spread between Spanish and German 10-year debt passed 600bps for the first time to reach 607bps. The euro slumped to a two-year low against the dollar, dropping to $1.2152, and a 12-year low against the yen at Y95.54. Those moves came after yesterday's Spanish debt auction saw borrowing costs soar for two, five and seven-year debt. Today's bond market action has also seen so-called safe haven bonds including US treasuries, German bunds and UK gilts...