Standard & Poor's cut Spain's sovereign debt rating to just one notch above junk, a move that raises the nation's borrowing costs and increase pressure on it to seek a bailout, Reuters reports.

S&P cut Spain's rating two notches, from BBB-plus to BBB-minus, and is maintaining a negative outlook. The downgrade brings S&P's rating into line with Moody's.

Spanish 10-year government bonds were trading at 5.83% today. Spanish yields spiked above 7% earlier this year, then subsided on the news of the ECB's bond-buying.

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