Amid increasing fears that Spain will need a full-fledged bailout from international lenders, 10-year yields climbed to an euro-era high of 7.625%, while the spread over German bunds rose to 640 bp. Meanwhile, 3- and 5-year yields are nearing 7.5%.
Levels above 7.0% are considered as unsustainable. Other euro zone members, as Ireland, Portugal and Greece, were forced to seek troika's aid when yields topped 7.0%.
In the stock market, the Spain's Ibex 35 is leading losses in the region, down 2.3%. The euro trades just above 1.2100 against the dollar, after hitting a fresh 2-year low of 1.2067 on Monday.