Spain election fails to soothe nervous debt markets

MADRID - A resounding election victory by Spain's center-right People's Party failed to calm nervous debt markets on Monday as concern over the deepening eurozone crisis and a lack of concrete proposals lead to a continued rise in premiums.
The difference between Spanish and German bond yields rose to 472 basis points in early trade, up by around 28 bps from settlement on Friday. Yields on its 10-year paper rose in line with troubled Italy.
"It's a little bit late in the day to be looking to austerity and certainly nothing we have seen from the Irish government has turned around sentiment significantly in the interim," said RBS interest rate strategist Harvinder Sian.