Tensions creep back into Spanish bond market

The interest rate on Spain's key 10-year bonds is edging higher again amidrenewed uncertainty over the recession-struck country's ability to manage itsfinances and avoid a sovereign bailout.
The yield demanded by investors on the secondary market — where issued bondsare 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 mightseek some financial aid and the European Central Bank said it might buy Spain'sbonds to help ease market pressure.
Spain's crisis and the future of the euro will be the center of talks Thursdaybetween Prime Minister Mariano Rajoy and visiting French President FrancoisHollande.