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Madrid - Madrid share prices soared nearly 6% in opening trade on Monday after the eurozone agreed to throw a lifeline to Spanish banks of up to €100bn.
In the first minutes of trade, the IBEX-35 index of leading companies shot up 388.3 points or 5.93% to a peak 6 940.3. After 15 minutes, the market was still up a healthy 4.60%.
Stricken lender Bankia, which has been nationalised by the government, jumped 20.52% at one point. It was still up 18.56% at €1.22 after the first quarter-hour of trade.
Spain's borrowing costs fell but remained at levels widely regarded as unsustainable over the longer term.
Spanish 10-year government bonds yields tumbled to a low of 6.017% from the previous close of 6.08%.
When compared to safe-haven German government 10-year bonds, the risk premium demanded for Spanish debt dropped to 4.62 percentage points from 4.89 points at the end of last week.
In the first minutes of trade, the IBEX-35 index of leading companies shot up 388.3 points or 5.93% to a peak 6 940.3. After 15 minutes, the market was still up a healthy 4.60%.
Stricken lender Bankia, which has been nationalised by the government, jumped 20.52% at one point. It was still up 18.56% at €1.22 after the first quarter-hour of trade.
Spain's borrowing costs fell but remained at levels widely regarded as unsustainable over the longer term.
Spanish 10-year government bonds yields tumbled to a low of 6.017% from the previous close of 6.08%.
When compared to safe-haven German government 10-year bonds, the risk premium demanded for Spanish debt dropped to 4.62 percentage points from 4.89 points at the end of last week.
