Confidence in the bailout (or “victory for the Euro”) of Spain’s ailing banks does not appear to be very high as Spain’s borrowing costs have risen to the highest rate since the launch of the euro in 1999, with the benchmark 10-year bond yield hitting 6.81%.
Cost of borrowing rises
The cost of borrowing for Spain increased to 6.1% on Monday and this has once again raised the spectre of a bailout.