Spain Says No, No, No - Markets Say Yes

Elena Salgado

From Bloomberg - Spanish Finance Minister Elena Salgado said there’s “absolutely” no risk the country will need an international bailout as its borrowing costs compared with Germany’s surged to a euro-era record. Asked in an interview on Punto Radio in Madrid if Spain risked having to seek a rescue like Ireland or Greece, Salgado said “absolutely not.” The euro faces “speculative attacks” which Spain is in the “best conditions to resist,” she said. Spain’s 10-year bond yield surged 20 basis points to 5.12 percent, pushing the spread over German bunds to the widest since the euro was created in 1999, as Ireland’s bailout prompted speculation that Portugal and Spain may also need help. Irish yields jumped 28 basis points to 8.93 percent after the nation’s credit rating was cut two levels by Standard & Poor’s, and Portuguese yields rose 26 basis points to 7.32 percent. Read full story here:

Spain Says No, No, No - Markets Say Yes