Monday, June 14, 2010

Another Spain-ECB Rumour

The stock market eventually shrugged it off after considerable morning volatility, but the bond people did not... yet another newspaper report that ECB support was being organized for Spain.

According to Bloomberg, the 10-year yield is up 22 bps on the day. On the other hand, 4.65% doesn't look like an interest rate that a sovereign basket case can escape with paying.

Interesting also that FT Alphaville didn't pick up and run with what was the mainstay of their stock in trade only a few weeks ago.

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3 Comments:

Anonymous said...

4.65% because it is "guaranteed" by the ECB. For no other reason.
Bond markets are virtually closed to Spanish companies.
Death to the Spain economy, as we currently know it, is unfortunately, very near. Hopefully, it will drag down this perverse political system Spain endures as well.
But that this will be painful, it will.

Charles Butler said...

With all due respect, your explanation doesn't make clear why the Greece 10-year is currently yielding 9.57% in the secondary market and the Portuguese, 5.41.

Anonymous said...

I think the explanation is SIZE and TIME.