Spain’s risk premium remained close to euro-era record highs on Tuesday and stocks dropped to levels last seen nine years ago as fears mounted of the need for Spain to seek a full bailout after Catalonia joined other regions in saying it need central government assistance to meet debt payments that are due.
The yield on the benchmark 10-year bond touched 7.636 percent, it highest level since the introduction of the single currency. The risk premium was up 6 basis points at 638.
The blue-chip Ibex 35 lost the psychologically important 6,000-point market and closed down 3.58 percent at 5,956.30 points, the lowest level since April of 2003. Energy stocks fared particularly badly ahead of a reform of the sector the government is planning that will include tax hikes. Acciona dropped 9.34 percent and Repsol 7.16 percent. Among the banks, Santander lost 4.54 percent, while BBVA declined 4.15 percent.