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Spain borrowing costs peak as EU ponders bank aid

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MADRID/LUXEMBOURG (Reuters) - Spain's medium-term borrowing costs soared to euro-era record levels at an auction on Thursday, hours before an independent audit was due to reveal how big a capital hole in Spanish banks needs to be filled by a euro zone bailout. Euro zone finance ministers were due to discuss later in the day how to channel up to 100 billion euros ($126 billion) in rescue loans to Spanish lenders weighed down by bad loans from a burst property bubble. But many in the markets see the package as a mere prelude to a full bailout of the Spanish state. Madrid (Spain) Foreign Exchange Market Government National Government International Organizations Berlin (Germany) European Union...

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