FXstreet.com (Barcelona) - “So far at least, the Spanish Government’s decision to delay seeking a bail-out does not seem to have backfired” write the London team at Capital Economics.
Spanish bond yields remain low by recent standards but they feel that the Government would be unwise to wait too much longer. They believe that if markets were to conclude that the ECB’s OMT programme might not ever be used, Spanish yields could quickly move back to their summer peaks.
They believe that “In such a scenario, Spain would suddenly find itself in a much weaker bargaining position to negotiate favourable conditions on a bail-out.”
Spanish bond yields remain low by recent standards but they feel that the Government would be unwise to wait too much longer. They believe that if markets were to conclude that the ECB’s OMT programme might not ever be used, Spanish yields could quickly move back to their summer peaks.
They believe that “In such a scenario, Spain would suddenly find itself in a much weaker bargaining position to negotiate favourable conditions on a bail-out.”
