Spain borrowing rate hits danger zone
Market watch top headlines
Spain's borrowing costs on its benchmark 10-year bond has hit the critical seven per cent level as finance ministers gather in Brussels to discuss terms of a rescue package for the country's banks.
The yield on 10-year bonds rose 0.13 per cent on Monday morning to a level that market-watchers consider is unaffordable for a country to raise money on the bond markets in the long term.
Spanish officials have said the finance ministers' meeting could decide how much money the country's stricken banks need from a lifeline of up to 100 billion euros ($A122.02 billion). Investors fear a full-blown bailout of Spanish public finances would be too large to handle.
Spain's economy is the eurozone's fourth-largest and is larger than Portugal, Ireland and Greece combined.