Euro-zone bond markets suffered another sell-off Tuesday, with investors especially dumping short-term debt after Spain was forced to pay a heavy price to auction its latest brace of Treasury bills.

The Spanish Treasury was forced to pay a euro-era record 5.11% yield on three-month Treasury bills at auction, more than double the rate paid at last month's auction. By way of comparison, to access the short-term debt market Spain now must pay more than Greece paid at its last three-month auction a week ago.