Spain debt costs to stay high in wake of austerity plan

MADRID (Reuters) - Spain's borrowing costs are likely to stay high on Tuesday when it tests investor appetite for its debt for the first time since announcing more austerity last week, suggesting markets remain unconvinced it can avoid a European bailout. Prime Minister Mariano Rajoy unveiled a package of savings and tax hikes worth 65 billion euros ($80 billion) over the next two and a half years, in a bid to demonstrate that Madrid can control its finances. But market doubts have kept its debt costs elevated. Yields on the short-term debt, using secondary market pricing as a guideline,...