Investors were bracing themselves for volatility across Spanish markets today after pro-independence parties won an absolute majority in regional Catalonia elections.
The yield on Spanish 10-year government bonds was 3.4% higher, at 1.521% as at 0709 GMT. Bond prices move inversely to yields.
Futures on Spain´s Ibex 35 indicated it would open 2% lower on Friday morning.
Tensions appeared set to escalate over the coming days and weeks after the Spanish federal government received a severe blow in Catalonia´s regional election.
The Madrid government led by Mariano Rajoy had been pinning its hopes on the pro-independence movement losing its credibility in Thursday´s snap poll.
Instead, the result appears to have emboldened the pro-independence movement.
In a record turnout, which saw 80% of voters make it to the ballot box, three separatist parties won a total of 70 seats in the 135-seat regional parliament.
Maths appear to have severely frustrated Madrid, as the overall separatist majority came despite the pro-unionist Citizens party taking the largest number of seats of any single party, at 36.