It’s reported there is a dispute between Rajoy and his finance minister regarding the necessity for the bailout. However with almost €40bn of debt to repay in a matter of weeks it’s inevitable.
That’s why the bond yield rose today. The market is licking it’s lips.
Why? Because The ECB cannot step in and buy Spanish debt until the country requests help. Once that happens the IBEX market will rise.
Rajoy is playing hard ball and will be forced into an embarrassing climb down. He is a very clumsy politician.