21 November 2011

SPAIN / EUROZONE : Landslide Win For Rajoy's Conservatives; Bond Market Impatient Over Rajoy's Vague Reforms.


      The only surprise in Spain's election Sunday...was the size of the conservatives' victory.
      The pro-business party (PP) led by the probable PM... Mariano Rajoy...swept the Socialists out of power...with 45% of the vote...winning 186 of 350 seats...in the biggest landslide since 1978...as 72% of the electorate turned out.
       Rajoy's party already governs 11 of 17 of Spain's autonomous regions. 
       However the bond market has not been reassured by his lack of details about proposed reforms...and the month-long delay before he assumes office.
        It sent 10 year bond yields up again...by 20 bps...to 6.57%.