Watch CBSN Live

Spain's borrowing rates rise on bailout fears

(AP) MADRID - Spain's borrowing rates continue to rise as uncertainty in global financial markets and concerns about economic growth raise worries the country might eventually need a bailout.

Yields on 10-year bonds are up to 5.47 percent mark after rising all week. In March, the yield was below 5 percent.

The spread between the Spanish yield and the benchmark German equivalent hit 358 basis points on Friday, the highest since early January.

Analysts say the rise is due to doubts over the new conservative government's commitment to meet deficit reduction targets and concerns that a global growth slowdown and market jitters will hurt Spain's chances of avoiding a bailout.

Economy Minister Luis de Guindos on Friday described comparisons with bailed-out Greece as "total nonsense."

View CBS News In
CBS News App Open
Chrome Safari Continue