Spain borrowing costs peak as EU ponders bank aid

MADRID/LUXEMBOURG (Reuters) - Spain's medium-term borrowing costs soared to euro-era record levels at an auction on Thursday, hours before an independent audit was due to reveal how big a capital hole in Spanish banks needs to be filled by a euro zone bailout. Euro zone finance ministers were due to discuss later in the day how to channel up to 100 billion euros ($126 billion) in rescue loans to Spanish lenders weighed down by bad loans from a burst property bubble. But many in the markets see the package as a mere prelude to a full bailout of the Spanish state. ...