Euro slips as bond yields soar in Spain, Italy

Rapidly climbing bond yields in two at-risk euro zone nations pulled down the shared currency of the European Union against the world's reserve currency on Thursday, Reuters reports.

Spain saw yields on 10-year government bonds increase to 7 percent, the same level at which Greece, Ireland and Portugal sought bailout aid to confront the ravages of the sovereign debt crisis. Three-year bonds for Italy shot up to 5.3 percent. Both nations' auctions were on Thursday.

"Spanish yields are creeping up, which clearly indicates that the bank bailout deal will not change anything and they are dragging Italian yields higher," head of Absolute Returns and Currency Stuart Frost with fund manager RWC Partners told Reuters. "For the euro/dollar, all this means it is on a slippery slope down."

Concerns are full-blown about the dangers of the debt scourge's contagion as Greece, a two-time recipient of bailout aid since June 2010, prepares for elections on Sunday. The Aegean's first attempt in early May did not produce a clear winner.

Mariano Rajoy, prime minister of Spain, said on Wednesday that increased European fiscal and banking integration is necessary for the nation he leads and the euro bloc, The Associated Press reports.