Spain risk premium


The debt of Rajoy and Sanchez

Spain’s Motion Of Censure: Medium-Low Probability Of Being Successful

The Spanish government is facing a motion of censure. In the country’s parliamentary system, if one is presented it requires that an alternative candidate be put forward, who will certainly be the socialist Pedro Sánchez. The debate and the voting will be held on 31 May and 1 June, respectively. Considering the current composition of parliament, Bankinter’s experts provide below the three possible numeric combinations needed for the motion of censure to go through.



Spain risk premium falls below 100 bp thanks to QE

Mari Pinardo | Do you remember the summer of 2012, when Spain’s risk premium reached a record high of no less than 638 basis points? Four summers later, this spread seems like it belongs to a completely different country. Since that fateful summer, Spain’s sovereign risk has declined nearly 550 bp and just last week broke the 100 bp threshold. There are basically three reasons which have pushed the risk premium through the 100 bp threshold: a date for Spain’s caretaker Prime Minister Mariano Rajoy’s investiture, the economic policies which have been in place in the Eurozone since April 2015 and the fact that it looks less likely the Fed will raise interest rates in September.


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Spain sees sovereign debt interests go down by 50%

MADRID | By Julia Pastor | Spanish public Treasury will have its weekly appointment with investors on Thursday. This time the country will issue bonds with maturities of 5, 10 and 12 years, respectively. There would be nothing unusual about it if international investors’ appetite for the Spanish sovereign debt were usual. However, interests in national treasuries currently reach levels of the 90’s when, before euro’s introduction, those bought Spain’s debt during seven quarters without a break. The institution even considers the possibility of creating 50 years bonds. At this moment, the Spanish 10 years bonds yield under 3.25%. As the summer comes the benchmark debt could stand at around 3%.