LONDON: Spanish and Italian government bond yields rose on Wednesday as investor confidence waned that Madrid would soon seek a bailout needed to trigger the European Central Bank's latest crisis-fighting measures.
Prime Minister Mariano Rajoy, who is facing protests against further austerity measures, was quoted by the Wall Street Journal as saying he would ask for aid if the country's borrowing costs remained high for too long. He gave no further details.
"There is a bit of noise coming from the political side... You are seeing people protesting on the streets there. It won't be that easy for the politicians to agree on further austerity here," said Commerzbank strategist Rainer Guntermann.
Spanish 10-year yields rose 12 basis points on the day to 5.89 percent with two-year yields up by a similar amount at 3.36 percent. Italian equivalents were also higher.
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