Tension high in Spain

29 May 2012 by Jim Fickett.

From the Financial Times:

Athens, Dublin and Lisbon lasted just 16, 24 and 34 days after the premium they pay to borrow over Germany reached 500 basis points before seeking international help. Spain hit 500bp on Monday.

Spanish 10-year bond yields, which move inversely to prices, rose to 6.5 per cent, drifting closer to the 7 per cent level seen by many as unsustainable. The move has left many in the markets thinking that some kind of international bailout is inevitable.