By Simon Miller

Spanish bonds hit a euro-era high this afternoon as investors cast doubt over the €100bn (£81bn) bailout package.

The country’s 10-year bonds hit a high of 6.853% before trading back around 6.686 after investors echoed concern that private debt holders would be subordinated on their debt if the money comes from the European Stability Mechanism and the cost of borrowing goes up as Spain’s public debt levels rise. The previous high of 6.8% was in November 2011.

Further pressure came as Fitch downgraded 18 banks over the continuing concerns over their bad loan exposure.

Italian ten-year yields also rose above 6% as its investors fear that a government debt auction to be held later this week will suffer due to the jittery market conditions.

Home     More News

Financial Risks Today Beta Banner

Other stories you may find of interest:

France and Germany urged Greek bond deal
Germany and France have pressed for a quick solution to the debt talks between Greece and its private creditors as Moody’s downgraded five Greek covered bond transactions.

Moody's downgrades 13 Italian banks
Moody's has downgraded 13 Italian banks after the weakening of Italy's credit profile which led to it being downgraded to near-junk status on 13 July.

Markets hit by US downgrade
Last week’s decision by Standard & Poor’s (S&P) to downgrade the United States’ long-term sovereign credit rating from AAA to AA+ ended a harrowing week for Wall Street, and its impact has been felt today throughout global markets.

This website is a part of Perspective Publishing Limited, registered in England No 2876166.