Spain borrowing cost crisis: Rate at euro-era high

Published June 12, 2012 6:46pm ET



MADRID (AP) — Spain’s benchmark borrowing rate hit its highest level Tuesday since the country adopted the euro currency, after ratings agency Fitch downgraded 18 banks on Tuesday and investors continued to find more questions than answers in the country’s decision to seek help for its ailing bank sector by tapping a €100 billion ($125 billion) eurozone bailout fund.

The yield on Spain’s 10-year bond yield rose to hit 6.81 percent in afternoon trading, according to data provider FactSet, while stocks seesawed between positive and negative territory and ended the day almost unchanged, up 0.1 percent.

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