After Moody's became the second ratings agency to downgrade Spain's sovereign debt, the country's borrowing costs skyrocketed to record highs.
"The interest rate — or yield — on the country's benchmark 10-year bonds rose to a record 6.96 percent in early trading Thursday, its highest level since Spain joined the euro in 1999 and close to the level which many analysts believe is unsustainable in the long term," the AP reports.
A day after getting approval for a financial rescue he vowed Spain would never need, Prime Minister Mariano Rajoy said it was his idea all along.
"No one pressured me into this. I pushed for it myself, because I wanted a line of credit," Rajoy said. He refused to call it a "bailout." He called it a "victory" instead.
Most Spaniards don't buy that. In a poll published Sunday, 78 percent of respondents said they have "little or no" faith in Rajoy and his ruling conservatives. That's just six months after they won elections in a landslide.
NPR's Philip Reeves, reporting on 'Morning Edition'
After rising sharply earlier today, European financial markets have come off their highs as investors "question the logistics of the $125 billion bailout of Spanish banks and wonder ... whether Monday's gains in financial markets were nothing but a relief rally," Dow Jones Newswires reports.
This is WEEKEND EDITION from NPR News. I'm Rachel Martin.
Europeans woke up this morning with a couple of big fundamental questions looming over them. Have they saved Spain? And if not, is the eurozone heading for collapse? After weeks of denial, the Spanish government finally admitted what pretty much everyone else already knew: The country's banks need a bailout. The Spanish haven't said how much they need. But eurozone finance ministers had a long conference call yesterday and agreed they'd lend Spain up to $125 billion.