Spain borrowing costs set to rise amid Greece fears

Spain's PM has warned borrowing could become "astronomical" despite national banking reforms

Spain's borrowing costs look set to spike on Thursday when the country's treasury sells up to 2.5bn euros (£2bn; $3.2bn) of three- and four-year sovereign bonds.
It could pay buyers about 5% on the longest bond - up from just over 4% at its last auction two weeks ago.
The auction comes amid fresh fears contagion from Greece could trigger a Spanish banking crisis.
Spain's prime minister says borrowing costs could become "astronomical".
Mariano Rajoy called on European leaders to publicly back highly indebted European countries and said debt levels would have to be brought down to bolster market confidence.
"All these measures are to get out of the hole we find ourselves in," he said on Wednesday.
Spain is in recession and unemployment is rising. Investors are concerned about the health of its public finances and banks.
Despite banking sector reform, borrowing costs have continued to rise.
Yields have risen significantly in secondary markets, suggesting the same will be true in the government auction.

Source: http://www.bbc.co.uk/news/business-18099670