Spain's borrowing rates rise on bailout fears

A Spanish flag flies over a military building with a symbol of the Franco era in Barcelona Thursday Oct. 11, 2007. Statues, street names and other symbols honoring Gen. Franco and his 40-year rule would be eliminated under a bill, presented by ruling Socialist Party, that seeks to make amends to victims of the Spanish Civil War. (AP Photo/Manu Fernandez)
AP

(AP) MADRID - Spain's borrowing rates continue to rise as uncertainty in global financial markets and concerns about economic growth raise worries the country might eventually need a bailout.

Yields on 10-year bonds are up to 5.47 percent mark after rising all week. In March, the yield was below 5 percent.

The spread between the Spanish yield and the benchmark German equivalent hit 358 basis points on Friday, the highest since early January.

Analysts say the rise is due to doubts over the new conservative government's commitment to meet deficit reduction targets and concerns that a global growth slowdown and market jitters will hurt Spain's chances of avoiding a bailout.

Economy Minister Luis de Guindos on Friday described comparisons with bailed-out Greece as "total nonsense."