Spain's bond yields jump as bailout fears grow

[marmar]

(Bloomberg Business Week) The interest rate on Spanish government bonds rose sharply on Monday, a sign that investors are becoming more worried about the country's ability to afford mounting debts as its economy shrinks

The rate, or yield, on the country's 10-year government bonds jumped to 6.10 percent on the secondary market, the highest since the country's new conservative government under Prime Minister Mariano Rajoy took office in December. Later on Monday, the yield dropped slightly to 6.02 percent. It had closed at 5.93 percent Friday after a week of persistent market tension.

The 10-year bond yield surged toward 7 percent late last year, a level considered unsustainable for a country over a long period. Greece, Portugal and Ireland had to ask for bailouts after their yields stayed above 7 percent. ...............(more)

The complete piece is at: http://www.businessweek.com/ap/2012-04/D9U633J00.htm