Tensions are increasing with each passing day of the Eurozone debt crisis. Therefore, Spain has recently made an effort to raise the 4.457 billion Euros i. e. $6.1 billion in the new short-term debt by paying higher borrowing rate on Tuesday.

Standard & Poor's sovereign credit rating of Italy and Spain is a major source of concern for the debt markets today, but recently, Standard & Poor's dropped the credit rating for Italy. Result of which was seen within hours in form of a major test running in the region i. e. auction of government bills.

During the auction, Spain majorly focused upon its 12-month and 18-month bills, which according to the country would easily meet its target to raise 3.5-4.5 billion Euros, said the Bank of Spain.

In the auction, it was also cited that the investor's demand totally outstripped the supply and that too by more than two to one figures and requests amounting to 12.3 billion Euros, but Spain in return paid them higher rates of return.

The action surely showcased that costs were being raised to finance the country's debt, figures of which grew to 65.2% of Gross Domestic Product as of June 30, which a year earlier stood at 57.2%.