Analysis details (09:03)
- Earlier this morning, El Confidencial reported that "Spanish PM will demand a relaxation on the deficit target for this year at the Eurogroup meeting later this week".
- Which risks undermining Rajoy's deficit reduction plan and potentially decrease the effectiveness of yet to be implemented OMT program. Of note, Spanish lawmakers continue to avoid seeking financial assistance via the OMT and have benefited immensely from bond yield spread compression which took place since the ECB pledged to do whatever it takes.
- Yesterday it was reported that Spanish PM Rajoy is coming under further pressure due to scandals with some opposition lawmakers calling for his resignation. Today, El Pais reported that the Anti-Corruption Prosecutor is to investigate Partido Popular accounts over the past 13 years.
05 Feb 2013 - 08:45 - Fixed Income - Source: RANsquawk