"Monday, Spain said its economy contracted for the second-straight quarter during the first three months of the year putting it officially into recession. The country's economic weakness and high unemployment mean costs for social payments are surging, which makes its debt load even more unmanageable.
Bond investors have pushed yields on Spanish debt sharply higher because of the increasing potential risk for the country to default.
Egan-Jones estimated there is a 3% chance Spain will default on its debt in the next year. It projected Spain's rating will eventually fall to double-B.
Spanish 10-year debt yielded 5.75% Monday, according to Tradeweb. It yielded 4.63% three months ago."
Excerpt from Original Source