Spain, Italy Debt Problems Deepen

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The debt problems of two European nations are getting worse.

Investors are getting more and more worried that Spain and Italy will not be able to make all the payments on their huge debts.

Both countries are considered too big for bailout packages and fewer countries in Europe are in financial shape to help rescue other nations.

In a volatile day of trading on Tuesday, Italy's 10-year borrowing rate briefly spiked to 6.21 percent before easing to 6.09 percent. Meanwhile, Spain's edged down to 6.21 percent from Tuesday's euro-era high of 6.45 percent.

"The upward march in Spanish and Italian bond yields is evidence of the relentlessness of the sovereign debt crisis," said Jane Foley, an analyst at Rabobank International.

Italy, the eurozones third-largest economy has debt nearing 120 percent of economic output, but had been viewed for months with calm by bond markets.

Spain is struggling to recover from nearly two years of recession. The country is struggling with a swollen deficit and a jobless rate that stands at a eurozone high of nearly 21 percent.

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