On the other side of the Atlantic, there was also some disappointment that a Spanish bailout wasn't discussed at the European finance ministers meeting given that the sovereign was funding itself successfully in financial markets. “It is the same catch-22 situation we've found ourselves in a number of times during this Sovereign crisis and in reality the market will likely need to force the issue if it really wants a bailout request.” Reid adds.
According to the IMF report, Spain was listed as the top fiscal consolidators over 2012-2013 in the euro area, though also one of the countries that have seen the biggest rises to gross debt given the growth weakness. All these added a cautious tone to the Spanish complex with the 10-year government bond yield up 11bps to 5.82% and the IBEX down 1.5%. Spanish senior bank's CDS also ended the day 10-15bp wider.