Spanish Economy Minister Luis de Guindos said that a spread between Spanish and German 10-year bond yields of more than 400 basis points for a prolonged period would complicate the country’s ability to fund its debt.
“The key is that independently from short term movements, we should look at the underlying medium-term trend,” de Guindos told reporters in Barcelona today. “In this sense, a spread of more than 400 basis points is obviously a problem for the public sector and also the private sector’s funding.”
The difference between the yield on the benchmark Spanish 10-year bonds and comparable German debt fell 24 basis points to 409.6 today. The spread closed above the 400 level on April 5 for the first time since November.
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