Spanish bond yields continue to back up

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Back above 5.50% this morning from low yields of 5.25% on Tuesday.

Spain’s insistence on an unrealistic guarantee from the ECB that the central bank drive Spanish/German yield spreadsĀ  down to 200 bp from 420 bp today has lowered the odds of Spain tapping the ECB’s backstop anytime soon.

We’ll see what Draghi has to say on the subject at the bottom of the hour.




Jamie Coleman


  1. they should be worried about their rate not the rate that Germany pays, if rates in Germany were 5 percent would he be happy paying 7 Percent

  2. Hi Jamie, I wouldn’t call that an unreasonable request.At 420bps one would be shocked into waking up from one’s siesta, no?

    Kidding aside, Spain is implying that it doesn’t want to follow Greece’s footsteps of offering to repurchas its obligados at steep discounts, since it doesn’t even have a 50 Euro cent coin in exchange for 1 Euro in obligados…

    Also Spain is looking for a once-and-for-all solution to its debt, useless to meet Troika 18 months down the line…


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