News Headline Summary

Spain would ask for bailout if given guarantee on yields, according to an official

- Germany signaling doesn't want Spain bailout.
- No-bailout scenario in 2013 would be bad for Spain.

- Official says if they guarantee the risk premium would be kept 200 basis points lower, it would ask for a bailout tomorrow.

Update details:

- Earlier in the year, it was reported that Spain wants the ECB to guarantee a 200bps spread if it seeks a bailout, currently spread is at 397bps.
- Spain is still resisting asking for aid, a prerequisite to trigger the ECB’s Outright Monetary Transactions program (OMT).

Reaction details:

- No immediate reaction observed as Spain has been resisting asking for aid even though the ECB has reiterated its readiness to buy bonds via the OMT.

Print 11:21, 05 Dec 2012 - Economic commentary - Source: Newswires