Spanish yields shoot through 7% after junk warning

Spanish government bond yields have shot through the danger level of 7% as fears grow its debt could soon be rated as junk.

Following a warning from ratings agency Moody's that Spain could be downgraded in the next three months, the bid yield on Spanish bonds spiked above 7% for the first time since the creation of the euro. The yield on 10-year bonds is currently at 7.006%, according to data from Tradeweb. Moody's said Spain's decision earlier this week to borrow €100bn (£80bn) from other eurozone countries to bail out its banks will "further increase the country's debt burden, which has risen dramatically since the onset of the financial crisis". Spanish benchmark 10-year bond yields have continued to...