Eurozone crisis: Why is the 7pc bond yield important for Spain? When the price goes up, the yield goes down - if lots of people want to buy the government bond it means it is viewed as a good risk and therefore the government doesn't have to pay as much in the way of interest to get banks or other countries to lend to them. However when the price goes down because investors become more reluctant to lend to that country, then the yield goes up - the government has to pay a higher interest rate to persuade banks or countries to lend to them. Why does it matter if Spain's bond yields are higher than 7pc? What is the wider implication of a 7pc yield? That is why the 7pc level has taken on such significance in investors' minds.