Euro trouble again – Spain bond yields jump above 6%, raising bailout fears
Spain is suffering from a deep economic slump brought about by a bust in its property and construction markets. Unemployment is the highest in Europe, with a record 4.75 million out of work. Half of Spain’s under-25s are unemployed. – BBC News
From BBC News
The yield suggests that if Spain wanted to borrow for 10 years today, it would pay more than 6%.
In comparison, the yield on 10-year bonds from Germany, the eurozone’s strongest economy, is 1.73%.
While this happened initially, investors are afraid of just how much the Spanish banks are relying on cheap ECB loans to stay afloat.
Since 2010, Greece has been bailed out twice and the Republic of Ireland and Portugal also needed bailouts to stay afloat.
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