Spain bond yields at record high12/06/2012 - 17:24:59
Spain’s benchmark borrowing rate has risen to its highest since the country joined the euro, after Fitch credit ratings agency downgraded 18 domestic banks.
Spain’s 10-year bond yield traded at 6.78 % today, according to data provider FactSet.
Spain agreed last weekend to take a European bailout for its banks, but investors are worried it will not solve the country’s problem as the government may have trouble paying the money back.
Fitch says in a statement that its downgrade of the banks was a result of a previous downgrade of the Spanish sovereign debt on June 7.
Fitch says it had conducted stress tests, both on the Spanish banking sector as a whole and on individual banks, updating results from tests done in 2011.