CREDIT MARKETS: BP Bonds Rally While Weak Data -2-

16th Jun 2010 22:29

Renewed talk of a bailout for Spain caused euro-zone debt fears to flare again. As International Monetary Fund Managing Director Dominique Strauss-Kahn heads to Spain, a newspaper reported that the European Union, the IMF and the U.S. Treasury are in talks about a EUR250 billion ($308.68 billion) line of credit for the euro-zone country, which is beset by an unemployment rate of over 20%. Spain and the IMF denied the report, but Spain's risk premium, as measured by the yield spread on Spanish bonds over German bunds, hit its highest level since the creation of the euro. -By Chris Dieterich, Dow Jones Newswires; 212-416-2611; [email protected] (Michael Aneiro, Anusha Shrivastava, Prabha Natarajan and Min Zeng contributed to this article.) (END) Dow Jones Newswires June 16, 2010 17:29 ET (21:29 GMT)