LONDON, Oct 4 (Reuters) - Spain’s government borrowing costs rose to their highest since March on Wednesday, stretching the gap over German peers to the widest in five months, after Catalonia’s secessionist leader said the region will declare independence in “a matter of days”.
Charles Puigdemont’s comments to British broadcaster BBC come in the wake of a weekend referendum which was declared illegal by Spain’s central government and marred by a violent police crackdown.
Spain’s 10-year bond yield rose 5 basis points to 1.77 percent in early trades, according to Reuters data, the highest since mid-March.
That stretched the spread over German equivalents, which shed 3 basis points to a one-week low of 0.43 percent , to 134 basis points - the widest since early May. (Reporting by John Geddie; Editing by Jamie McGeever)