Spain's cost of borrowing climbed to a record high Thursday, topping 7 percent in the latest market signal that the debt-choked member of the euro zone may be closer to defaulting than previously believed.

The interest rate on the government's 10-year bond hit 7.017 percent, putting it in the same company as three other euro zone members who have needed bailouts, Portugal, Ireland and Greece. The record high yield comes just days after euro zone finance ministers agreed to loan about $125 billion to rescue Spanish banks.