Spain's borrowing costs jumped Wednesday and demand for its debt tumbled at the country's first debt sale since the government unveiled its latest austerity budget last week, which apparently failed to convince investors that Madrid can be counted...
"Spain sold €2.6 billion ($3.4 billion) of government bonds Wednesday, compared with a maximum target of €3.5 billion, the Bank of Spain said.
"The sale is the first since Budget Minister Cristobal Montoro presented the government's 2012 spending plan on March 30 and said public debt will rise to 79.8 percent of gross domestic product. That's the highest since at least 1980 even as Spain makes the deepest budget cuts in three decades.
"Prime Minister Mariano Rajoy told a party meeting in Malaga, Spain, that the nation's economic situation is of "extreme difficulty...."