Spanish bond yields jump to six-month high on Bankia bailout

Spain's borrowing costs have hit a high not seen since last November on news the government has approached the European Central Bank for help bailing out Bankia.

The yield on a 10-year government bonds hit 6.505% in early trading, an increase of 0.187% on the day, as fears over the banking sector worsened. It is the highest level of interest Spain has had to pay on its debt since the ECB stepped in to buy Spanish bonds at the end of last year. Bankia is seeking a €19bn rescue package, and may use sovereign debt as collateral to try to get a cash injection from the ECB. However, the central bank is so far resisting pressure to pump more funds into failing eurozone economies, having already spent €1trn. Last week shares in Bankia were susp...