MADRID (AP) — The yield on 10-year Spanish bonds remains perilously high as the Treasury prepares to test market sentiment with an auction of up to €3 billion ($3.8 billion) in short-term debt.
The interest rate on the benchmark bond stood Tuesday at 7.07 percent shortly after trading began, down 0.05 percentage points. Seven percent is considered unsustainable and eventually forced three other countries in the eurozone to seek bailouts.
The benchmark Ibex-35 stock index was down about 1 percent.
The low level of investor confidence promises to cause a rise in the Treasury's borrowing rates when it auctions off up to €3 billion in 12- and 18-month bills later in the day.
An auction of mid-term debt is scheduled for Thursday.