Spain's benchmark bond yield climbs to bailout level

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http://www.elpais.com/articulo/english/Spain/s/benchmark/bond/yield/climbs/to/bailout/level/elpepueng/20111117elpeng_1/Ten

Unrelenting pressure in the secondary market forced the Spanish Treasury at Thursday's 10-year bond auction to offer a yield of over seven percent, raising the specter that Spain could be the next euro-zone country in need of a bailout.

With only three days to go to the general election on November 20, heavy selling of Spanish government bonds pushed the risk premium to just under 500 basis points, raising the ante for the Treasury at the auction.

Shortly after the outcome of the tender, the differential between the yield on the benchmark Spanish 10-year government bond and the German equivalent stood at 499 basis points, yet another euro-era high.

The Treasury sold 3.562 billion euros in 10-year bonds at a marginal rate of 7.088 percent, the level Greek bonds with the same maturity were trading at in May of last year before the Hellenic country became the first in the euro zone to seek financial aid from the IMF and the European Union.



*** it's spreading.