Spain Struggles to Sell Debt

Ten-year yield moves above 7% after lackluster 5-year auction.

Spain’s five-year borrowing costs surged as the government braced for protests against spending cuts, while France paid record-low yields of less than 1 percent to sell similar securities.

Spanish five-year notes yielded an average 6.459 percent at auction today, compared with 6.072 percent a month ago. French yields for the same maturity fell to 0.86 percent, almost half of last month’s level. Spain sold debt as lawmakers debated spending cuts in Parliament, where police erected barriers and stood guard.

Protests, Strikes

The U-turn has prompted protests and strikes, and unions have called demonstrations across the country later today. Police erected protective barriers around Parliament, and guarded the emblematic city hall building with three riot vans.

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