Spain's Rajoy: We cannot last for long with 7% yields

Yields on 10-year Spanish government bonds are close to unaffordable, Spanish Prime Minister Mariano Rajoy has told his parliament ahead of this week's all-important EU summit.

Yields on 10-year bonds stood at 6.8% on Wednesday, a level dangerously close to the 7% rate. Spain has requested a €100bn bailout for its banking system, but has not yet requested financial assistance for the country as a whole. "The most urgent subject is the subject of financing. There are institutions and also financial entities that cannot access the markets. It is happening in Spain, it is happening in Italy and it is happening in other countries," said Rajoy. Earlier, the Bank of Spain said the country's recession had deepened in the second quarter of 2012. Its economy contr...