Spain lurched closer to becoming the largest euro zone country yet to be shut out of credit markets when it had to pay a record euro era price to sell short-term debt on Tuesday.

The soaring borrowing costs showed that a euro zone deal to lend Spain up to 100 billion euros has not solved the country’s problems or restored investor confidence.
Spain, the euro zone’s fourth largest economy, had to pay 5.07 % to sell 12-month Treasury bills and 5.11% to sell 18-month paper with yields on longer term bonds over 7%.