Spanish borrowing costs soar

Spain’s borrowing costs shot up today in an auction of short-term debt, in another sign that investors are growing more wary of holding the country’s bonds amid fears that the eurozone’s debt crisis is spreading.

That contagion is evident in the hike in Spain’s borrowing rates in the secondary markets. The yield on its benchmark 10-year bonds soared to 6.25% today, not far short of the 7% rate considered unsustainable in the long-run.