LONDON (SHARECAST) - Spain's risk premium, the difference between its 10-year bond yield and Germany's, has dipped below 550 basis points (bp) to 547.
Spain's risk premium opened above 550bp, or five-and-a-half percentage points, on Monday morning but has since dipped lower.
The Spanish 10-year bond yield is at 6.8%, very close to the 7% that is considered to be unsustainable and which prompted the bailouts of Ireland, Greece, and Portugal. The German 10-year Bund is at 1.3%.
Investors are wondering how long Spanish president Mariano Rajoy will be able to hold out before requesting assistance from Europe's rescue fund.
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