Spanish 10-year yields above 6pc as fiscal fears grow

LONDON: Spanish 10-year government bond yields broke above 6 percent for the first time this year on Monday on persistent concerns about the country's failure to convince investors it can keep its budget deficit in check.

"Assuming there is no (European Central Bank) intervention you would not see a cap on Spanish yields, they would just keep increasing," Rabobank rate strategist Lyn Graham-Taylor said.

Spanish 10-year yields were last up 13 basis points on the day at 6.12 percent, above the 6 percent that some analysts said could see borrowing costs accelerating to unsustainable levels if maintained for an extended period. Five-year Spanish yields broke above 5 percent to their highest this year at 5.07 percent.

Concerns that Spain's fiscal problems could spark another financial crisis in the euro zone drove German 10-year yields to an all time low of 1.628 percent.