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Spain's borrowing costs at fresh high after Moody's cut
14 June 2012 @ 18:49

Spain's borrowing costs have risen to another euro-era record, with lenders demanding a higher interest rate.

The yield on benchmark 10-year bonds hit 7% on Thursday morning, a level which many analysts believe is unsustainable in the long term.

It came as Moody's cut Spain's credit rating to one notch above "junk" and ahead of an Italian bond auction.

Read more at BBC.co.uk

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3 Comments

Jeremy Warner said:
15 June 2012 @ 02:16

Spain is a basket case, De Guindos is welcome to potter about blaming everything on "uncertainty regarding Greek elections" and calling for calm, but the simple fact is that the markets don't believe a word coming from Moncloa.
The idea that "markets" mount "attacks" is idiotic, anymore than 2nd hand car buyers "punish" Ford Escorts. Markets assess risk, ratings agencies assess risk, Spain is a disaster, with a collapsed housing market, 50% plus youth unemployment, 25% plus regular unemployment, 1.5 million homes with no income whatsoever, 1 million homes unsold...
This 100 billion (biilion, can you believe it?) will possibly cover the rescue of 3 or 4 Spanish financial entities, it won't begin to cover the real debts.

midasgold said:
16 June 2012 @ 06:26

No state bail out - said the P.M. !!??!!
1) Banks get 100 billion on condition that the state is responsible for the interest payment.
2)Banks buy Spanish bonds to support the state.(@7%)
The state gets the bailout !
No state bailout - said the P.M. !!!!!!!!!!!!!!!!!!!!!!!
It's voodoo economics. Bernard (Mandof?-ponzi) went to jail
for less.