Comments made by anonymous government official

Spain ready to immediately ask for bailout if it gets guarantee that ECB would intervene in bond markets in amounts that would lower the country’s borrowing costs significantly.

Apparently the Spanish govt has sought, but not secured, guaranteed EU/ECB commitment to reduce Spanish/German 10 year govt bond spread by 200 basis points.

The official stated “This is why the Spanish government has these doubts, and is wondering what to do next. If they guarantee the risk premium would be kept 200 basis points lower, it (government) would ask for bailout tomorrow.”

EUR/USD has extended sell-off a little, presently down at session low 1.3075.

Talk of some sell stops through 1.3070.