SPAIN’S borrowing costs have broken through the level where its debt is seen as unsustainable, despite the victory by pro-bailout parties in the Greek elections.
Financial data provider FactSet said the interest rate on Spain’s 10-year bonds – an indicator of market confidence in how well a country can pay down its debt – stood at 7.02%.
That marked a rise of nearly 15 points for the day, in which the yield had initially fallen. Stocks were down 1.5 points.
Both Spain and Italy saw borrowing costs rise last week as fears grew that Greece may pull out of the Euro.
Despite the initial relief at the results of the Greek elections, fresh concerns over mounting debt problems in the two countries saw markets fall.
Interest rates on Italy’s 10-year bonds rose to 6.08%.