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Spain's stocks soar, pressure on bonds down

4:54 AM, Jun 11, 2012   |    comments
Shares in Bankia, which had requested €19 billion in aid to cover its bad loans and assets, rose 16 percent.
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MADRID -- Spanish stocks are rising strongly and the interest rates on its bonds are down sharply in the first day of trading since the Spanish bailout was announced.

The Ibex-35 stock index was up almost 5 percent shortly after opening. Bank stocks rose strongly. Shares in Bankia, which had requested €19 billion in aid to cover its bad loans and assets, rose 16 percent. The yield on 10-year bonds was down 17 basis points to about 6 percent.

Eurozone finance ministers said Saturday they would make up to €100 billion ($125 billion) available to the Spanish government to prop up banks laden with non-performing loans and other toxic assets after the collapse of a real estate bubble. Spain has yet to say how much of this money it will tap.

(Associated Press)

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