Investors demanded a yield of 7.1% on Spain's 10-year bonds on Friday morning signalling an expectation that it could be the next country to require a bailout.
Earlier in the month, returns on equivalent Italian bonds also breached the 7% threshold at which Greece, Ireland and Portugal officially required emergency funding.
Italy's new prime minister Mario Monti is due to face a second vote on his austerity bill in the lower house on Friday, after it was approved by the senate in Rome.
The changes in leadership in Italy and Greece have done little to ease concerns over the finances of both countries.
Spain is due to go to the ballots on November 20.
Eurozone jitters have also hit France - although nowhere near the 7% dangerzone, yields on its 10-year bonds have climbed towards 3.6% while its prized triple-A credit rating remains under pressure.
After four straight days of falls, the FTSE 100 opened slightly lower this morning, along with its counterparts across Europe.
Markets fell across the world, with the Dow Jones Industrial Average closing 1.13% lower, and the Hang Seng and Nikkei 2.2% and 1.2% down on close. Read More