The cost of insuring against Spanish defualt climbed to a new record on Firday, as Prime Minister Mariano Rajoy battles to prevent his nation from having a bailout amid increasing worries over the health of the country's banking sector.

Credit default swaps on Spain climbed 17 basis points to 498 as of 4:00 p.m. in London, surpassing the prior all-time high of 493, according to the CMA. A basis point on a five-year CDS protecting 10 million euros of debt is equivalent to 1,000 euros a year.