Spain Debt 6%

The prices that Spain has to pay for debt continues to race higher. The level, now over 6% for 10-year notes, cannot be sustained if the nation is to lower its deficit. The pressures of budget cuts and the effects of high unemployment married with high debt cost will be too much. The factors, take together, have convinced a number of  investors that Spain will move to the edge of default and need a bailout. The bailout could be several times the one for Greece, which would put it well into the hundreds of billions of euros. According to CNBC, Rabobank rate strategist Lyn Graham-Taylor said

“We’re back in full crisis mode. It is looking more and more likely that Spain is going to have some form of a bailout. Assuming there is not an (ECB) intervention you would not see a cap on Spanish yields, they would just keep increasing.”