IMF calls for 'decisive action' as Spanish bond yields near danger level
Source: The Guardian
The International Monetary Fund has warned the eurozone's leaders to take "decisive action" as Spanish bond yields shot up to dangerous levels, signalling a fresh leg of the sovereign debt crisis.
In its annual report on the eurozone's policies, known as an Article IV, the IMF made clear that it believes euro ministers have not yet done enough to underpin the future of the single currency.
It called for the European Central Bank to cut interest rates, implement a "sizeable" package of quantitative easing, and wade into bond markets to drive down borrowing costs.
Madrid saw its 10-year bond yields – a proxy for how much the government must pay to borrow – hit 6.94% on Wednesday, close to the 7% level that many analysts consider to be unsustainable.
Read more: http://www.guardian.co.uk/business/2012/jul/18/imf-euro-spain-bond-yield
