With European equity markets declining by about three percent today, it should not be much of a surprise that sovereign debt spreads are back on the rise. In the charts below, we show the current 10-year sovereign debt spreads relative to Germany for Spain, Italy, and France. Spreads in Spain are leading the race to last year's highs as its 10-year sovereign debt is now yielding 433 bps more than German 10-year debt. This is just 7% below last year's high of 466 bps. Italy and France have also seen pretty big jumps in their spreads relative to Germany, but still have a ways to go before last year's highs come into play. Let's hope that is a level that we don't reach.