Spanish 10-year bond yields have shot above the 'unsustainable' 7% mark, ahead of a crunch meeting between European finance ministers this afternoon.

Politicians are meeting to thrash out a rescue plan for the continents' debt stricken banks, following talks last month outlining how best to tackle the ongoing crisis.

Leaders agreed to ease access to direct financing for banks, handing Spanish lenders €100bn to prop up its banking sector. However, despite an initial positive reaction, falls in yields were short-lived.

Today, with finance ministers still to confirm the size of the bailout and the conditions applied to the loans for both banks and governments, tensions are once again rising.

As a result, Spanish 10-year bond yields have climbed above 7%, and are currently trading at 7.02%, according to Bloomberg.

Italian 10-year bond yields also jumped 0.08% to 6.1%.

European equity markets are marginally weaker despite the pressures in bond markets, with the FTSE 100 down 0.35% or 20 points, at 5,642.

Meanwhile, the French Cac is down 0.09% to 3,165, with the German Dax flat at 6,410.