Forex Flash: Spain bailing on a bailout program as long as it can – TD Securities
FXstreet.com (Barcelona) - The Spanish auction of this morning was somewhat mixed: Spain sold ¬3.9bn of 2015s, 2017s, and 2022s, more than meeting its target of ¬2.5-3.5bn, but bid/cover ratios were a little lower.
This auction was the first round of financing for 2013 after Spain completed its 2012 financing earlier this month. "On the prospects for triggering OMT, there had been some speculation that Spain was going to wait for the elections in Catalonia this weekend, and finally request a bailout program after that", wrote Marcin Budkiewicz, strategist at TD Securities. "But if that were the case, one would think that Spain would want to do less funding now rather than more, knowing that yields will be lower once the OMT starts up", Budkiewicz added, now believing that Spain is trying to put off a bailout program as long as it can, "and is taking advantage of relatively calm market conditions now in case things worsen again in the future".
This auction was the first round of financing for 2013 after Spain completed its 2012 financing earlier this month. "On the prospects for triggering OMT, there had been some speculation that Spain was going to wait for the elections in Catalonia this weekend, and finally request a bailout program after that", wrote Marcin Budkiewicz, strategist at TD Securities. "But if that were the case, one would think that Spain would want to do less funding now rather than more, knowing that yields will be lower once the OMT starts up", Budkiewicz added, now believing that Spain is trying to put off a bailout program as long as it can, "and is taking advantage of relatively calm market conditions now in case things worsen again in the future".
Free Annual Reports
