Spanish bond yields hit highest level since 1997

Spanish 10-year bond yields rose above 6.0 percent in late trading on Monday, the highest level since 1997, on concern that contagion from the eurozone debt crisis could spread to Spain. Yields on a 10-year Spanish bonds rose to 6.003 percent, up from 5.664 percent at the close on Friday. "This is a very worrying situation because if Spain is attacked, the international community will not be able to save it like it did for Greece, Portugal and Ireland," Laurent Geronimi, fixed-income advisor at Credit Suisse said. The Greek debt crisis, the inability of the international community to come up with a second bailout for Greece and the ratings downgrade for Portugal last week have pushed Spain into an extremely difficult situation, Geronimi said. Bond yields on two-year debt also rose on Monday, reaching 4.145 percent from 3.703 percent on Friday.