- 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.
Reaction details (12:07)
- 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.
Analysis details (11:31)
- 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).
05 Dec 2012 - 11:20 - Fixed Income Economic Commentary - Source: Newswires
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