Spain's market regulator lifts short-selling ban

MADRID Jan 31 (Reuters) - Spain's market regulator said on Thursday it lifted its ban on short-selling stocks and bonds, which were targeted by speculators during last year's euro zone debt crisis turmoil.

The regulator imposed the ban in July during a massive sell-off in Spanish sovereign debt and shares. Stocks and bonds have rallied since the European Central Bank said it would act as a backstop to bets against peripheral euro zone countries.

Spain's borrowing costs have greatly eased since the height of the crisis during the summer, and funding is easier for the country's banks and corporations. (Reporting By Sonya Dowsett; Editing by Fiona Ortiz)