Effects of deleveraging, from @bbcnews

“Spain’s cost of borrowing rose sharply when the government sold short-term debt on financial markets on Tuesday.

It was the country’s first fund-raising since the change of government at Sunday’s general election.

Spain raised 2.98bn euros ($4bn, £2.6bn) in an auction of three- and six-month bills, but at higher yields.

On the three-month bills, the annualised interest rate Spain had to pay more than doubled to 5.11%, from 2.29% at the last auction in October.

On the six-month bills they surged to 5.227% from 3.302%.”

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Read more about deleveraging here: http://globotrends.pbworks.com/w/page/14807973/deleverage