Spanish bond yields hit all-time high against bund

The spread on Spanish government bonds over German bunds reached an all-time high today on continued economic concerns for the Mediterranean country.

Spain's 10-year bond yield climbed to 4.87% on Wednesday afternoon, 2.23% higher then the equivalent benchmark bund. Spanish bond yields have been soaring in recent days on fiscal concerns and this was not helped by rumours the European Union, IMF and US Treasury were drawing up a €250bn liquidity plan for Spain. While IMF managing director Dominique Strauss-Kahn will meet with Spanish Prime Minister Jose Luis Rodrigo Zapatero on Friday, the Spanish Government denies it involves handout talks. "That story is rubbish," European Commission spokesman Amadeu Altafaj says. IMF spokeswom...