Spain: stocks soar, pressure on bonds down

MADRID

Spanish stocks are rising strongly and the interest rates on its bonds are down sharply in the first day of trading since the Spanish bailout was announced.

The Ibex-35 stock index was up almost 5 percent shortly after opening. Bank stocks rose strongly. Shares in Bankia, which had requested (EURO)19 billion in aid to cover its bad loans and assets, rose 16 percent. The yield on 10-year bonds was down 17 basis points to about 6 percent.

Eurozone finance ministers said Saturday they would make up to (EURO)100 billion ($125 billion) available to the Spanish government to prop up banks laden with non-performing loans and other toxic assets after the collapse of a real estate bubble. Spain has yet to say how much of this money it will tap.