Spanish government bond yields need to fall 400 basis points for the nation to remain solvent, according to Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co.
Spain’s 10-year bond yields fell 44 basis points, or 0.44 percentage point, to 6.94 percent at 4:16 p.m. London time, after European Central Bank President Mario Draghi said officials will do whatever is needed to preserve the euro.
“No matter,” Gross wrote in a posting on the Twitter website today. “They need 400 basis more to remain solvent longer-term.”
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