by Calculated Risk on 6/28/2010 04:00:00 PM

The 10-year Greece-to-German bond spread has widened to over 800 bps today. This is the highest level since the the EU / ECB policy response when the spread peaked at just under 1000 bps.

And from the Financial Times: Banks in Spain hit by end of ECB offer

Spanish banks have been lobbying the European Central Bank to act to ease the systemic fallout from the expiry of a €442bn ($542bn) funding programme this week ... On Thursday, the clock runs out ... One senior bank executive said: “Any central bank has to have the obligation to supply liquidity. But this is not the policy of the ECB. We are fighting them every day on this. It’s absurd.”
excerpted with permission

This liquidity facility was put in place during the financial crisis. The ECB is offering one week and three month liquidity facilities, so there won't be any short term liquidity crisis - but there are concerns that his could lead to less lending in Spain.

And a market update from Doug Short of dshort.com (financial planner).

Click on graph for interactive version in new window.

The graph has tabs to look at the different bear markets - "now" shows the current market - and there is also a tab for the "four bears".