Everything is cool in Europe, right? Banks are going to pass the stress tests with flying colors, the European debt backstop will eliminate the risk of default, the market is way too short EUR/USD…

We’ve heard it all in the last week…

Then why are Spanish bond yields creeping higher on a daily basis toward their highs 2.25%.

I’m just sayin’, maybe things aren’t as cool as they appear.

7-7 spreads