Spanish Bonds Fall Even as Rajoy Unveils More Budget Cuts

Spain’s efforts to calm investors with 10 billion euros ($13 billion) of budget cuts in education and health failed to stem concerns the nation may be the fourth euro member to need a bailout.

The yield on Spain’s 10-year benchmark bond surged 20 basis points to 5.95 percent today as Economy Minister Luis de Guindos declined to rule out a rescue for Spain and Bank of Spain Governor Miguel Angel Fernandez Ordonez said the nation’s lenders may need additional capital if the economy weakens more than expected.

Spain's Prime Minister Mariano Rajoy during a plenary session at the Spanish Parliament to approve the new conservative government's first batch of austerity measures, in Madrid.

Read More at Bloomberg