Spanish 10-year bond yields hit 6.5 percent

LONDON: Spanish 10-year government bond yields hit their highest since late November on Monday as the state's takeover of Bankia fueled concerns over the rising costs for Spain of helping its banks.

Spain may recapitalise Bankia with Spanish government bonds in return for shares in the bank which last week asked for rescue funding of 19 billion euros ($24 billion), a government source said on Sunday.

Spanish 10-year government bond yields were 16 basis points higher at 6.5 percent - their highest since the European Central Bank was forced to step in and buy the country's debt late last year.