Greek election results provide relief to Spanish stocks and bonds, but not for long - InfoNews

Vernon News and Business Directory

Current Conditions

8.9°C

Greek election results provide relief to Spanish stocks and bonds, but not for long

A broker walks past the main screen at the Stock Exchange in Madrid Monday June 18, 2012. Spanish markets breathed a sigh of relief Monday with stocks opening higher and the country's borrowing costs dipping slightly after pro-bailout parties won the elections in Greece. Spain is a focus of fears it might be the next eurozone country to need a full bailout. The government is to announce this week how much of a euro100 billion fund it will tap to rescue banks that got burned when a real estate bubble popped. (AP Photo/Paul White)
June 18, 2012 - 5:29 AM

MADRID - Span's borrowing costs broke through the level where its debt is seen by many market watchers as unsustainable Monday, despite the victory by pro-bailout parties in the Greek elections.

Financial data provider FactSet said that shortly after 0900 GMT 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 7.02 per cent. That marked a rise of nearly 15 basis points for the day, in which the yield had initially fallen. Stocks were down 1.5 points.

News from © The Associated Press, 2012
The Associated Press

  • Popular vernon News
View Site in: Desktop | Mobile