Spanish Yields Hit Nose Bleed Territory Helping to Reverse Oil and Stock Futures

Oil dropped in New York as rising Spanish borrowing costs pushed the dollar higher, curbing demand for commodities.

Futures fell as much as 1.1 percent in New York after the Spanish 10-year bond yield rose to a euro-era record of 7.13 percent. Greece’s New Democracy and Pasok parties won enough seats to form a majority in the 300-member parliament, according to an official projection. Money managers cut bullish oil wagers for a sixth week, according to the Commodity Futures Trading Commission’s Commitment of Traders Report.

“Investors should remain cautious until Greece forms a government that could stabilize the markets for the short-medium term,” Myrto Sokou, an analyst at Sucden Financial Ltd. in London, said by e-mail.”

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