The yield for Spanish 10-year bonds went up to 6.9 per cent on Wednesday, meaning the country's borrowing costs were set to remain high despite a new austerity package and a eurozone pledge to channel money into Spain's ailing banks, dpa reported. The bond yield had closed at 6.8 per cent on Tuesday. Experts regard a 7-per-cent level as unsustainable in the long term. The spread measuring the difference with German bonds went up to 574 basis points, from 559 basis points. Spain had, on Tuesday, sold one-year and 18-month bonds at declining interest rates. At the time, analysts attributed the improvement to a 65-billion-euro (80-billion-dollar) austerity package announced by the government, and to a pledge by the eurozone to channel up to 100 billion euros into Spanish banks. Those measures, however, had failed to continue to convince investors, analysts said Wednesday.
