'No logic' to market pressure on Spain, Italy: minister

MADRID : Spain 's Finance Minister Elena Salgado said Tuesday there was no logic to market-driven pressure on Spain a

Published July 12, 2011 Updated July 12, 2011 07:02am

1 min

By Abdul Ahad

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Long-term interest rates spiked in Italy and Spain on Monday amid fears of contagion from the eurozone debt crisis but Salgado insisted Italy and Spain enjoy "strong, diversified" economies.

"There is no logic to Spain or Italy being affected by the market instability," she told Spanish radio Cadena Ser.

"We have strong, diversified economies which have always faced up to the problems and so if we are capable of transmitting that determination to everyone, reasonably the markets have to calm down."

Spanish 10-year bond yields surged to the highest level since 1997, striking 6.003 percent on Monday, from 5.664 percent the previous day as investors feared sovereign debt difficulties spreading in the eurozone.

Stocks also slumped Monday. Madrid's Ibex 35 index of leading shares closed 2.69 percent lower.

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