The Spanish ten year public bond yields went up to 7% on Thursday. This is the first time in the common currency history that the yield goes up to the level viewed by many markets as costly for any sovereign to borrow above long-term.
Spanish Government, Euro news, Eurozone, Spanish 10 years bond
According to the latest reports from Tradeweb, the Spanish ten year yields went up by 23.4 basis points on the day.
This increase followed a demotion of Spain’s credit rating by three-notch. Moody’s took the rating within one notch of scrap status.
The increase in Spanish yields has been attributed to the approval of a bailout plan of about 100 billion by the Euro zone ministers at the weekend. The bailout will help in rescuing the country’s financial institutions.