That has been the case, to be sure, but the market has a tendency to drill down and look at the details in the final analysis.
Spain has very effectively maneuvered to cover its 2012 financing needs under the guise of the ECB’s bazooka-backstop. But markets are fickle. At some point the mere possibility of a bailout will not satisfy them and they will push Spain to the brink until a bailout is put in place. At that point, if history is any guide, the bailout will be too little/too late.
Spanish 10-year yields continue to recede, down 5.30% this morning from near 6% two-weeks ago.
