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Investing

Spain Borrowing Costs Rise Above 6% on 10-Year Paper

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By Douglas A. McIntyre Published
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If any more proof is necessary that Spain cannot raise capital at reasonable prices, its new bond auction offers it. The average yield on 10-year notes was 6.044%, up from 5.743% in April.

Spain, which has an economy in recession and unemployment of nearly 25%, desperately needs to bring in capital to support its troubled banks and finance its deficit. The nation has insisted that it does not need outside help. In the past few days, though, it has dropped that position.

A bailout of Spain, the European Union’s fourth-largest economy by gross domestic product, appears to be all but certain. Some economists and the media have claimed Spain is “too big to fail” because of the percentage of the EU GDP it represents and the size of a full-blown bailout.

The news interest rate news shows that Spain has reached the end of its tether.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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