HEARD ON THE STREET: Spain Is Still Europe's Flashpoint - WSJ.com: "Ireland appears to have lost the confidence of markets; Portugal may be heading that way, judging by the latest spike in bond yields. Can policy makers insulate Spain from the crisis? The euro zone's emergency bailout program can cope with the €117 billion ($162.9 billion) of funding HSBC says Ireland and Portugal need between now and 2013, but will struggle to supply the €351 billion required by Spain without damaging the whole euro zone. For the moment, contagion looks contained, but Spain's fate hangs as much on Berlin as on Madrid.
So far, Spanish yield movements have been relatively moderate. Since the latest selloff started in mid-October, 10-year yields have risen 0.4 percentage point to 4.4%; Spain is still able to sell new debt at cheaper rates than its existing stock. In contrast, Irish and Portuguese 10-year yields have risen 1.8 percentage points and 1.2 points respectively"
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