Spain’s borrowing costs have risen at its latest bond auction and on money borrowed today, payable in 10 years, Spain has to pay an interest rate of 6.975%, the highest since 1997. A high rate or yield indicates investors may not have confidence in a government to fully repay its debts and the figure is perilously close to 7%, the level at which other eurozone countries have had to seek bailouts.
An interesting explanation of why Spain finds itself in difficulties: What’s the matter with Spain?