At the most recent auction of Spanish treasury notes, yields had pushed close to 6%, a level which is deemed psychologically important to investors and which could precipitate a rise to 7%, a level at which is deemed unsustainable by the majority of analysts. While the ECB could embark on another bond purchase spree as they’ve done in the past, they risk the wrath of the German government and central bank which have both criticized the ECB’s propping up of troubled sovereigns. Read more
