By Barbara Kollmeyer
MADRID (MarketWatch) -- The yield on Spain's 10-year government bond ES:10YR_ESP -0.98% steadied on Wednesday, as banking stocks drove a rebound for the country's stock market. The yield was flat at 7.58%, after briefly touched fresh euro-area highs above 7.7% in early trades, according to Tradeweb. The IBEX 35 index XX:IBEX +2.00% jumped 1.6% as banks such as Banco Santander SA ES:SAN +2.40% SAN -5.05% rose 2%, recovering from recent losses. Comments from European Central Bank council member Ewald Nowotny told Bloomberg that he sees some arguments for giving the European Stability Mechanism a banking license, which would effectively let it borrow money from the ECB.
