- Lyn Graham-Taylor, Rabobank strategist
Spain's cost of borrowing on the international debt markets breached the level of 6 per cent for 10-year bonds on Monday, mounting pressure on the European Central Bank to conduct new round of bond purchases.
"We're back in full crisis mode," Rabobank strategist Lyn Graham-Taylor said.
"It is looking more and more likely that Spain is going to have some form of a bailout."
"As we have seen before in Greece and Italy, once 10-year bond yields cross 6%, people start to get nervous pretty quickly," said a debt trader in London.
European shares ended Monday's session higher. The Stoxx Europe 600 Index rose 0.34 per cent to 254.26. Germany's DAX Index increased 0.63 per cent and France's CAC 40 Index gained 0.51 per cent.
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