Spanish bonds yields jump to a record high

by sagarmedia on July 21, 2012

Spanish bonds yields jump to a record high.

The yield on Spain’s benchmark government bonds has reached a record high due to growing investor worry over the country’s fiscal problems.Ten year bond yields briefly hit 7.3 percent on Friday. This is the highest level since Spain joined the eurozone. The yield above 7 percent would make it difficult for the government to rebuild its finances on its own.
A heavily indebted region in Spain, Valencia, said it would seek central government help to repay debt. The announcement drove market speculation over Spain’s economic fragility.A heavily indebted region in Spain, Valencia, said it would seek central government help to repay debt. The announcement drove market speculation over Spain’s economic fragility.