Does the ECB have a strong case for buying Spanish bonds?

If Spain applied to the EFSF/ESM for a (partial) sovereign bail-out, the path would become clear for the ECB to buy Spanish government bonds under its Outright Monetary Transmissions (OMT) programme. But given the near 2% drop in 10-year yields since 24th July, would such purchases still be justified? 

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.