Spanish bond yield hits 7 percent

 (Photo credit: Chris Devers)

 MADRID (AP) — Spain's ability to keep a lid on its finances without the help of an international bailout was thrown further into doubt Monday when its borrowing costs smashed through the level at which Greece Portugal and Ireland sought assistance and wiped out any rally from the pro-bailout election victory in Athens.

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 7.06 percent. That marked a rise of nearly 19 basis points for the day, in which the yield had initially fallen. Stocks were down 1.4 points, according to financial data provider FactSet.

The Greek results seemed to provide a respite as trading began. Fears of an abrupt Greek exit seemed to ease, and with them concerns that contagion from what could have been a definitive new chapter of the euro crisis would spread to Spain.... Continue to read.

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