Tensions creep back into Spanish bond market

Published: 30th August 2012 03:49 PM  |   Last Updated: 30th August 2012 03:49 PM   |  A+A-


The interest rate on Spain's key 10-year bonds is edging higher again amid renewed uncertainty over the recession-struck country's ability to manage its finances and avoid a sovereign bailout.
The yield demanded by investors on the secondary market — where issued bonds are traded freely — rose 0.10 percentage points Thursday to 6.53 percent. Although lower than a month ago, the rate is unsustainable over the long term.
Borrowing rates had edged down in recent weeks after Madrid intimated it might seek some financial aid and the European Central Bank said it might buy Spain's bonds to help ease market pressure.
Spain's crisis and the future of the euro will be the center of talks Thursday between Prime Minister Mariano Rajoy and visiting French President Francois Hollande.

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