• Spain knows if aid requested it will be granted
  • ECB should not dictate how Spain cuts deficits
  • Must meet deficit targets
  • Doesn’t want policy-by-policy conditions
  • Has not decided whether to request ECB aid
  • Will request aid if judges it correct for Spain

Lots of study but no action in Madrid as Rajoy tries to avoid bailout stigma.

EUR/USD at session lows. near 1.2757. Bids are scattered down to 1.2750; small stops are eyed below that level.

Headlines from Bloomberg via Spanish TV.