Portugal, Spain hit by investor fears over debt

LISBON, Portugal: Portuguese and Spanish borrowing costs have risen to near record highs as investors worried that the governments' debt loads will prove unsustainable, putting them next in line for a European bailout, and as a public sector strike hit Portugal.

The interest rate on Portugal's 10-year bonds reached 7 percent Wednesday, equaling a euro-era record. The equivalent Spanish bond yield rose to 5 percent at mid-morning from 4.91 percent at the start of trading. By contrast, 10-year yields for Germany - considered the benchmark - were only 2.7 percent.