From Zero Hedge:

It took Europe two days to go from fixed to fully broken all over again.

Those curious why they are waking up to a sea of red, Italian 10-year yields back over 7%, stock futures tumbling, the EUR/$ sliding, Italian, French, and Belgian CDS at fresh records, and a record scramble for Bund short-dated bonds (2-year under 0.03%) is due to two main things:

A failed Spanish auction now that contagion is back to sleepy Iberia, which sold €3.2 billion of bills, below the €3.5 billion target, with the yield soaring to 5.02% from 3.61% at Oct. auction leading to Spanish 2-, 10-yr yield spreads to Germany both significantly wider to records.

The second main factor is...

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More on the euro crisis:

How the euro could trigger a 2008-style crash

The euro crisis has entered a dangerous new phase

No way out: Why Germany could have no choice but to leave the euro