Euro Area

[gaelic cowboy]

Spanish 2 year paper now trading at 6.74%... Which means that for Spain to use 2 year bonds to borrow they would, in order to repay profitably, have to be growing at around 7%. Evidently they are not which is why Spain is effectively blocked from the markets.

Indeed as I feared the deal on Spanish banks was nothing of the sort and baring a solution to this crisis we should get a Spanish bailout by the backend of this year.

I would have thought though that the figure needed for repayment would be closer to 3.5% as they are 2yr bonds after all.