Maybe more ominous than rising yields on 10-year Spanish and Italian debt are sharply higher...

|By:, SA News Editor

Maybe more ominous than rising yields on 10-year Spanish and Italian debt are sharply higher rates on the 2-year paper. Both are about 120 bps higher than they were at the time of the ECB's 2nd LTRO (late Feb.). Presumably, both countries' banks loaded up at this end of the curve, meaning 6 weeks later, they're sitting on some large losses.