MADRID (AP) ? Spain's borrowing costs shot up Tuesday in an auction of short-term debt, in another sign that investors are asking for more when investing in the country's debts.
The Treasury sold euro3.2 billion ($4.4 billion) in 12- and 18-month bills, short of the euro3.5 billion maximum it had set.
The interest rate on the 1-year bills was 5 percent, compared to 3.6 percent in the last such auction on Oct. 18.
For the 18-month debt, the rate was 5.2 percent, up from 3.8 percent on that same day.
Spain also saw its bond yields rise sharply on the secondary market in the run-up to a general election this weekend.
The yield on the country's 10-year bond climbed to a perilous 6.25 percent Tuesday as the eurozone debt crisis rolls on despite changes of government in Italy and Greece. Anything above 7 percent is considered unsustainable in the long-run.
The Spanish yield Tuesday was up from the previous day's 6.07 percent.
Tuesday 10-year bond yield was 4.48 percentage points higher than that of the equivalent German benchmark bond, a record high since the euro's creation in 1999.
This Sunday's election is widely-expected to bring the opposition conservatives into power, as voters braving 21.5 percent unemployment and an economy posting zero growth punish the ruling Socialists.
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