Spanish Bonds Slump amid Protests

Ten-year yield moves back above 6% as Catalonia considers 'self-determination.'

Spanish bond yields surged the most this month as a second night of violent protests loomed amid sparring over the police response to clashes in Madrid.

Spain’s 10-year benchmark yield rose above 6 percent, approaching the levels seen before European Central Bank President Mario Draghi offered to buy struggling nations’ debt. Prime Minister Mariano Rajoy told the Wall Street Journal in comments confirmed by his office that he would “100 percent” seek a rescue if borrowing costs stayed “too high.”

‘Illegal’ Protest

Opposition politicians accused the police of overreacting to the protests. Interior Minister Jorge Fernandez Diaz said the demonstration was an “illegal” effort to occupy Parliament. People’s Party deputy leader Maria Dolores de Cospedal compared the demonstration this week to an attempted coup in 1981 when civil guard officers stormed Parliament.

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