Spanish yields hit seven percent after cut to brink of junk

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2012-06-14 11:58:11

(TRAMP Magazine) - LONDON (Reuters) - Spanish government bond yields rose above 7 percent on Thursday after Moody's cut the Spain's credit rating to just one notch above "junk", pushing borrowing costs ever higher and raising the prospect of a full-scale bailout. Moody's slashed Spain three notches to Baa3, its lowest investment grade rating, and said it could lower the rating further within the next three months. It said the newly approved euro zone plan to help Spanish banks would increase the country's debt burden. Yields on Spain's 10-year bonds rose as much as 25 basis points to a euro-era high of 7. ... /td>- Read Story
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