News Summary: Wall Street rally on Spain fades

AP News
Posted: Jun 11, 2012 5:17 PM
News Summary: Wall Street rally on Spain fades

BAILOUT EUPHORIA DIES: Stock markets in Europe and the U.S. rose and then reversed course after investors worried that a $125 billion loan to Spanish banks from European countries will not do much to resolve Europe's debt problem.

DEBT GETS COSTLY: Bond investors signaled that they are less confident about lending money to both Spain and Italy, which investors fear will be next to seek a bailout. The yield on Spanish 10-year bonds climbed 0.29 percentage point to 6.47 percent, and the yield on the comparable Italian bond rose by 0.28 percentage point to 5.83 percent.

STRINGS ATTACHED: The European Union made that there would be some strings attached to the loan besides interest. "When people lend money, they never do it for free," said Joaquin Almunia, the European competition commissioner.