Moody's and other credit rating agencies have recently been cutting Spain's rating to near junk status. Spanish 10-yr bond yields rose to a record high of 7.02%, a euro-era high. This borrowing cost is an unsustainable level for Spain. Greece Ireland and Portugal have asked for bailout when their 10-yr yields rose to 7.0%.
Meanwhile, Italy conducted a bond auction in which borrowing costs also increased sharply.
the government managed to sell the maximum targeted 4.5 billion euros ($5.69 billion) in three different bonds amid decent demand, totaling €7.473 billion. (Marketwatch)
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