News Summary: Spanish bond yields at euro-era high

AP News
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Posted: May 30, 2012 3:45 PM
News Summary: Spanish bond yields at euro-era high

COST OF MONEY: Spain's borrowing costs soared to their highest level since the country joined the euro, close to levels where other debt-stricken countries such as Greece and Ireland have asked for an international bailout.

IN SHORT: The interest rate _ or yield _ on Spanish 10-year bonds, a key indicator of market confidence in a country's ability to pay down its debt, shot up 25 basis points Wednesday to 6.67 percent _ matching the level it hit at the height of the eurozone crisis late last year.

HAVE AND HAVE-NOTS: A yield of seven percent is seen by many as unsustainable for a country to continue financing itself over the long term. Meanwhile, the difference between the Spanish bond and the equivalent safe-haven German bunds was a record 5.36 percentage points.