Spanish bond risk premium widens to record

PARIS - The risk premium which Spain must pay to borrow compared with benchmark German borrowing rates rose to a record 5.156 percentage points in mid-day trading on Tuesday on tension over Spanish banks.

The interest rate which Spain must pay to borrow for 10 years, as indicated by trading in bonds on the secondary market, was nearly 6.5 per cent. But the German 10-year rate, the lowest in the eurozone, fell to a record low point. -- AFP