Interest Rates On Spanish Bonds Have Increased After Bailout

This graph shows that investors are demanding a premium on Spanish debt following the bailout.  Investors are concerned about the way in which the deal has been structured.  The money is in the form of a loan to the Spanish government that it will funneled to the banks.  Investors may be concerned that loans to the government will be subordinated to the debt held by the creditors who are funding the bank bailout through the Spanish government.