Spanish 5-year bond yields hit euro area high

Spain's 5-year bond yields hit a new euro-era high at a disappointing auction today as investors cast doubt on the country's ability to repay its debt.

The yield on a government bond due to mature in July 2017 bond rose to 6.459%, up from 6.072% when it was last sold just a month ago, and the most Madrid has paid to borrow at that maturity for 16 years. Costs jumped on all three bonds offered, with the longest-dated, a seven-year, coming in near the 7% mark beyond which other eurozone nations have requested international bailouts. Yields on 10-year Spanish debt trading in the secondary market climbed back above 7% after the auction, Reuters reports. In total, Spain sold €3bn, at the top end of its targeted range although demand wa...