Spanish Borrowing Costs Soar After Downgrade on 18 Banks
Spain's benchmark borrowing rate rose to its highest since the country joined the euro after Fitch downgraded the credit ratings of 18 domestic banks.
Spain's 10-year bond yield traded at 6.78 percent on Tuesday, according to data provider FactSet.
Spain agreed last weekend to take a European bailout for its banks but investors are worried it will not solve the country's problem as the government may have trouble paying the money back.
Fitch said in a statement that its downgrade of the banks was a result of a previous downgraded of the Spanish sovereign debt on June 7. Fitch says it had conducted stress tests, both on the Spanish banking sector as a whole and on individual banks, updating results from tests done in 2011.