Spanish debt trades less than 200 bp higher in yield than German debt for the first time since Since the middle of November.
Irish debt is about 10 bp wider at 575 bp over bunds as the government falls into chaos ahead of the passage of the finance bill, the last key step in ratifying the EU/IMF bailout.
The bill is seen passing but there remains some uncertainty as to the future direction that any new government will take with regard to the bailout. Public opinion is vehemently opposed…My guess is that we will see a typically populist campaign but that a Fine Gail-led government will largely stick to the bailout course give the dearth of good options.
Greek spreads are a shade tighter (5 bp) amid talk that the EFSF will loan Greece money to buy back debt from the market.
Tighter spreads tend to be EUR supportive and they usually undermine CHF…
