MTECHTIPS

MTECHTIPS;-Crude oil tumbles as Spain yields surge; Brent at 17-month lowCrude oil futures came under heavy selling pressure during U.S. morning trade on Monday, as investors cut their exposure to riskier assets after Spanish borrowing costs spiked to a new euro-era high.Appetite for riskier assets also weakened as optimism surrounding Greece elections over the weekend began to fade.On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD82.51 a barrel during U.S. morning trade, plunging 3%.The July contract is due to expire at the end of Wednesday’s trading session. Contract expiration often leads to volatile sessions as market participants look to close out positions or reposition their portfolios.Meanwhile, the more actively traded contract for August delivery tumbled 1.85% to trade at USD82.78 a barrel. It earlier rose by as much as 1.5% to trade at USD85.82 a barrel, the highest since June 11. The yield on Spanish 10-year bonds surged to a euro-era high of 7.28% earlier, climbing above the critical 7% threshold, above the critical 7% threshold which prompted bailouts in Greece, Ireland and Portugal.The spike in borrowing costs came in spite of efforts to insulate Madrid from the effects of the ongoing sovereign debt crisis by agreeing on a EUR100 billion aid package for Spanish banks.