Spanish bond yields spike as bank reform awaited

(AP) MADRID - The pressure on Spain's bonds has ratcheted up as investors fret over the fallout from Greece's political crisis and await details of the Spanish government's latest plan to shore up the banking sector.

The yield on the benchmark Spanish 10-year bonds is flirting with the 6 percent level. Just before noon it stood at 5.98 percent, a jump of 20 basis points from the opening level.

The rise comes as the government prepares to unveil another plan Friday to clean up banks heavily exposed to an imploded real estate bubble.

Commentary: Where will Spain get money for bank bailouts?

Much attention is focused on Bankia, S.A., a bank which holds 32 billion in toxic real estate assets. Its shares were down nearly 6 percent, its third straight day of heavy losses. The broader market in Madrid was down 2.3 percent.