Spain Borrowing Costs Up, Again

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By Douglas A. McIntyre Updated Published
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The skepticism about Spain from international capital markets investors has returned. The yield on 10-year notes rose to 6.95% post auction today. The yield has risen again for several reasons. Spain’s central government reported that the nation’s bank and real estate problems were not being resolved, but are getting worse. Germany said that Spain will be liable for the problems of its own banks. And thousands of protestors took to the streets in protest of austerity measures, which have only increased as the nation tries to gain favor with its rescuers.

While Spain has demonstrated that it can knuckle under to requests for more cost cuts, the market has come to believe that its crippled economy cannot yield more treasury receipts, and therefore its deficits will rise. That, more that the balance of factors, will keep yields high.

Douglas A. McIntyre

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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