This one is a mini prediction. The sort of foolish short-term market movement calls that I think are usually such a waste of time.
But there is an angle here I’m exploring. Spanish yields have been climbing for months now on the very real risk of Euro breakup and Spanish default (at least in Euros). Yields were up to 7.6% last week before Draghi made a comment that the market believed meant they would buy Spanish bonds, as many and as often as necessary.
My take is that this is just one more in a long series of smoke screens without a real solution. The fire is still burning. Spanish bond yields started the morning just below 6.8%. I’m fully expecting a further sell-off in bonds and yields to close Friday at above 6.8%.