News Summary: Spain rates soar on downgrade

Associated Press

UP AND AWAY: Spain's key borrowing rate hit a fresh high Thursday not seen since the country joined the euro in 1999, after Moody's ratings agency downgraded the country to just above junk status.

TOO HIGH: The interest rate — or yield — on the country's benchmark 10-year bonds rose to 6.96 percent in early trading, close to the level that forced Greece, Ireland and Portugal to seek bailouts.

APOCALYPSE, NOT YET: Spain won't immediately collapse if the rate hits 7 percent, but reaching that point would affect it next week when it is scheduled to auction debt.

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