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Spain seeks lenders, finds few takers

Spain's financial system took a downturn Thursday as bond yields spiked.

Euro zone debt crisis spain 06 20 2011Enlarge
Demonstrators shout slogans during a protest against the euro zone leaders' agreed 'Pact For The Euro' on June 19, 2011 in Barcelona, Spain. Thousands across Spain protested how the country's economic crisis is being handled. (David Ramos/Getty Images)

Spain's financial situation took a turn for the worse Thursday as bond yields soared, overshadowing the positive economic numbers coming out the US, reported NPR.

At an auction of 10-year bonds, the average yield was 7 percent, a Euro-era record, as demands for the securities dropped, reported Bloomberg.

According to the Washington Post, Spain came up $600 million short of its goal after the bond auction, marking the lowest demand since the 2008 recession.

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Canadian Business reported that economists view the 7 percent interest rate as unsustainable, since both Greece and Ireland had to be bailed out when those countries' borrowing rates reached that level.

With this latest news, the Euro is struggling to stay above the $1.35 mark, after it hit a one-month low against the yen during European trading hours, the Wall Street Journal reported. Traders shunned the euro currency on Thursday's market, as fears begin to rise as even relatively secure countries' debt and borrowing levels reach unsustainable levels.

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http://www.globalpost.com/dispatch/news/regions/europe/spain/111117/spain-seeks-lenders-finds-few-takers