When a picture speaks louder than words: the Greek 10yr bond yield.

After Moody’s downgraded Greece to “junk” it fell out of certain government bond indices and hence forced selling was expected. Despite best efforts by the ECB to manipulate Greek bond prices upwards they fell, causing the yield rising to 9.08% (+0.76).

Meanwhile, top IMF honcho DSK (Sominique Strauss-Kahn) is visiting Spain “to discuss global economic developments with the Prime Minister” according to Reuters. The last time the IMF sent a delegation to a country was on April 15th (Athens). A month later Greece was insolvent.

Spanish 10yr today yield 4.73% (+0.06) – that’s more than 200bps over German debt (2.67%).

According to The Telegraph Spain wants to make the results of the European bank stress test public in retaliation for Berlin leaking the idea Spain could be forced to request money from the EUR 750bn rescue plan.