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Spanish bond yield hits 5-week high on post-election uncertainty

Yield difference between Spanish and Italian bonds at its widest in a month

Published Mon, Dec 21, 2015 · 09:50 PM

London

SPAIN'S government bonds fell, pushing the 10-year yield to the highest in five weeks, after an indecisive election left Prime Minister Mariano Rajoy with limited options to forge a governing majority, threatening a period of instability.

The yield difference between Spanish and similar-maturity Italian bonds widened to the most since mid-November amid muted declines in the rest of the euro area's peripheral debt markets.

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