"U.S. stock futures set to open sharply lower"
May 30, 2012, 7:15 a.m. EDT
Spain up against a wall as borrowing costs soar
Bankia woes, downgrade, central-bank governor exit pile onto crisis
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — Economists and analysts were asking just how long Spain can hold out before it needs a bailout for its banks in a chaotic trading session Wednesday that sent the government’s borrowing costs soaring to nearly the highest levels since the euro’s inception.
The yield on the 10-year Spanish government bond soared 22.7 basis points to 6.690%, edging closer to the Nov. 25, 2011 intraday high of 6.779% and closing high of 6.723%. Beyond that, the yield will sit at euro-era highs.
A level of 7% for Greece and Irish 10-year government bond yields prompted bailouts for those countries.
The yield on Italy’s government bond jumped 22.7 basis points to 6.121%.
Spain worries infected the rest of the markets, with U.S. stock futures set to open sharply lower, and investors scrambling for the perceived safety of the dollar, driving the euro further below $1.25 and slicing more than $1.50 off the price of oil.
More: http://www.marketwatch.com/story/spain-yields-push-higher-as-crisis-deepens-2012-05-30?dist=beforebell
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