Spain debt costs fall, key bond test awaits |
| Reuters - Jul 17, 2012 |
Spain's borrowing costs fell on Tuesday, at the first sale of debt since the government announced a new austerity package, but not enough to suggest markets believe the country's finances are on a sustainable path with banking problems yet to be resolved.
Prime Minister Mariano Rajoy unveiled spending cuts and tax hikes worth 65 billion euros ($80 billion) over the next 2-1/2 years last week, in a bid to demonstrate that Madrid can curb its debts.
But market doubts about whether Spain can avoid a full-scale sovereign bailout have kept its debt costs elevated with 10-year yields again heading towards the seven percent tipping point.
New Bank of Spain Governor Luis Maria Linde also took aim at the country's banks, urging them to implement recapitalisation plans quickly, whilst acknowledging for the first time that lenders which are not viable will have to be wound down.
Read Full Article from Reuters
- Posted: 2012-07-17 13:06:59
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