Spain debt costs fall, but still seen unsustainable

MADRID (Reuters) - Spain's borrowing costs dropped on Tuesday, at the first sale of debt since the government announced a new austerity package, but not enough to suggest markets believe the country's finances are on a sustainable path. Prime Minister Mariano Rajoy unveiled spending cuts and tax hikes worth 65 billion euros ($80 billion) over the next 2-1/2 years last week, in a bid to demonstrate that Madrid can curb its debts. But market doubts about whether Spain can avoid a full-scale sovereign bailout have kept its debt costs elevated with 10-year yields again heading towards the seven percent tipping point. Nonetheless, borrowing costs at Tuesday's...