Fitch downgrades Spain's four largest banks

The yield on 10-year Spanish bonds has fallen for the second day in a row, and now sit at 6.4% according to Bloomberg. Yesterday's news was ECB to relax loan rules for Spanish banks

Fitch Ratings downgraded its credit rating for three more Spanish regions on Monday, three days after it slashed Spain's rating by two notches blaming regional government spending.The ratings agency cut the credit rating of Asturias, Cantabira and Madrid by one notch to "AA-" from "AA" and said their outlook was negative, meaning it could be lowered again.

  The accusations of corruption against senior Popular Party officials, including Spanish Prime Minister Rajoy would not have necessarily been market move.   The accusations raise more questions than they answer.  However, Rajoy's denial may have deterred Asian traders early Monday, but European investors were more skeptical.    

By Marc Chandler:The accusations of corruption against senior Popular Party officials, including Spanish Prime Minister Rajoy, would not have necessarily been market moving. The accusations raise more questions than they answer. However, Rajoy's denial may have deterred Asian traders early Monday, but European investors were more skeptical.

After insisting no bailouts would be needed, Spain to spend billions on bank rescue Spain is planning a state bail-out of Bankia, the country’s third biggest bank by assets, in a move likely to involve the injection of billions of euros of public money into the troubled lender.

Bloomberg reports S&P Downgrades Spain, Citing Region Backtracking on Bank: Spain’s debt

Fitch ratings agency says it has downgraded Spain's two largest international banks Banco Santander and Banco Bilbao Vizcaya Argentaria (BBVA) from A to BBB+.

Fitch said Friday it cut the credit rating of three of Japan's biggest banks over concerns about Tokyo's ability to support the financial sector after the nation's sovereign debt rating was also cut.The global ratings agency said it lowered its rating to 'A-' from 'A' -- the seventh best score on a scale of 22 -- for Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group (MHFG), and Sumitomo Mitsui Financial Group.In the same statement, Fitch said it also lowered its rating for Sumitomo Mitsui Trust Bank to the same level as the major banks.