Spain's borrowing costs at fresh high after Moody's cut

Spain's borrowing costs have risen to another euro-era record, with lenders demanding a higher interest rate.

The yield on benchmark 10-year bonds hit 7% on Thursday morning, a level which many analysts believe is unsustainable in the long term.
It came as Moody's cut Spain's credit rating to one notch above "junk" and ahead of an Italian bond auction.
Italy also saw borrowing costs rise, selling bonds repayable in three years with a yield of 5.3%, up from 3.9%.
At the weekend, Spain agreed a 100bn-euro ($126bn; £81bn) bailout of its banks by fellow eurozone countries.
It was hoped that the bailout would help calm fears in the financial markets about the strength of Spain's banks and ease Madrid's borrowing costs.
However, Moody's said the eurozone plan to help Spain's banks would increase the country's debt burden.
Moody's cut Spain's rating from A3 to Baa3 and said it could reduce this further within the next three months.

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