Though Finance Minister Elena Salgado is really worried about the surge in the borrowing costs but she still says that Spain won’t need a bailout as the yield on the country’s benchmark 10- year bond is at its highest level since
2000.

Undoubtedly, demand for Spanish debt is still strong but Ms Salgado is definitely worried as in an interview today on TVE television in Madrid, she said that “Of course, the yield worries me. We are not, nor will we be, on the verge of any bailout.”

Spain’s government will be facing general elections in March; the polls which indicate that it will lose to the opposition People’s Party. Also, the government is definitely putting in its best efforts to convince the investors that it can reorder its public finances thereby avoiding the situations like following Greece, Ireland and Portugal into a bailout.

According to the reports of today, Spain’s 10-year bond yield has climbed to an 11-year high of 5.77 percent today.

“Each time we ask for money, there are lots of people willing to lend us the money we need, many funds, many sovereign-wealth funds, many countries, many investors,” Salgado said. She further added in her statement that she’s “not contemplating” the possibility of lawmakers rejecting the plan.