Spain is on the verge of needing a second economy rescue, after the last European agreement for the rescue of Spanish banks with a loan up to 100.000 million euros, had failed.
For the first time in Spain economic history, its 10-year national bond profitability reached 7%. Experts indicated this point as a zone of intervention since the cost of debt is becoming so expensive, it can be expelled from the market.
This Sunday, elections in Greece will be carried out and there are fears that this will end with the departure of the Euro in the Mediterranean country.
The Spanish Government yesterday referred directly to the situation in Greece as the main cause of the new historical rally of the Spanish bond and the risk premium.
Experts warn that the profitability on the 10-years Spanish bond is not the only factor to take into account at the moment of deciding an intervention. The profitability of short-term bonds and the debt ratio on GDP must also be considered. (MZ)