Spain's bailout decision depends on bond yields

MADRID
Spain's Prime Minister Mariano Rajoy Wednesday said that borrowing costs will weigh in the decision over whether the euro zone's fourth-largest economy will request a full bailout, the clearest indication yet that bond market swings may be a decisive factor in the ongoing euro-zone debt crisis                               
Asked in parliament about a possible bailout request by Madrid, seen by many as a must to help the country emerge from a double dip recession, Mr. Rajoy said such a decision "is very important" for Spain and will also depend on the conditions attached by European Union partners                               
"I don't know the conditions and I don't know whether Spain needs to ask (for a bailout)," Mr. Rajoy said
"Let's see how the risk premium and the financing spreads evolve going forward."
Spain's risk premium is commonly described as the spread between the market yield on Spain's benchmark 10-year bond and the German equivalent, and is now at its lowest level in weeks