By Barbara Kollmeyer
MADRID (MarketWatch) -- Pressure increased on Spanish bond yields on Monday, amid concerns over the banking sector, as earlier euphoria related to a win for Greece's New Democracy party faded. The yield ES:10YR_ESP +4.65% , which topped 7% earlier, was last up 31 basis points to 7.18%, pressuring the yield on Italy's 10-year bond IT:10YR_ITA +2.51% , up 17 basis points to 6.1%. "It's not Greece that matters but the boldness of measures on the part of eurozone policymakers to shore up Spanish and Italian sovereign debt at the most dangerous stage of the two-year-old eurozone crisis," said Nicolas Spiro, managing director at Spiro Sovereign Strategy. "Yet the bigger worry is Italy. Mr Monti's government needed the Spanish bail-out like it needed a hole in the head." The Spain IBEX 35 index XX:IBEX -2.51% sank 2.6% to 13,051.09.
