The yield of Spanish government 10-year bonds rose to a high of seven percent on Thursday, alarming the rest of the Eurozone. But what does 'bond yield' mean?
Governments borrow money from the markets by selling bonds. The yield is the amount that an investor can expect to get back, and it is implied by the bond's current market price.
The yield indicates how much the government that is issuing the bonds will have to pay in interest. So if a yield goes up, it becomes more expensive for the government to borrow money from the markets.
The Euro zone is waiting to see whether Germany will open its cheque book again for Spain, and if it does, whether this will actually help.
Distress calls went out from the Spanish Government about the future of the Eurozone - after Spain's borrowing rates hit an alarming 7%.
The cost for the Spanish government to borrow has hit 7 percent today - the level at which Portugal and Ireland asked for a bailout.