Spain
Interest rate on bonds rises amid worries bank bailout not enough
AP
Madrid
06/13/2012
The interest rate, or yield, on Spanish 10-year bonds started Wednesday six basis points to 6.73 percent, close to the 7 percent level that is seen as unsustainable over the long term.
The interest rate on Spanish 10-year bonds started Wednesday six basis points to 6.73 percent. Photo: EFE
The interest rate Spain would have to pay to raise money on the world's bond markets continued to rise Wednesday amid worries that a planned bank bailout might not be enough to save the country from needing an overall financial rescue.
The interest rate, or yield, on Spanish 10-year bonds started Wednesday six basis points to 6.73 percent, close to the 7 percent level that is seen as unsustainable over the long term.
On Tuesday the yield peaked at 6.81, a record for Spain since it joined the euro in 1999, before easing to close at 6.67 percent.
The benchmark Ibex-35 was up about 1 percent in early trading.
Spain has requested eurozone bailout money for banks laden with bad loans and other toxic assets from a burst real estate bubble. The eurozone says it will make 100 billion euros available, but Spain is waiting for audits to be completed before specifying its needs.