Analysts at Rabobank have put forward the.....>

SPAIN: Analysts at Rabobank have put forward the view that "a separatist-led

minority government seems the most likely outcome." Catalans will be taking part

in regional elections today today with polls due to close at 8pm local time (7pm

GMT).

- According to an average of polls "pro-independence parties (ERC, CUP and

JuntsxCat) poll at 67 or 68 seats collectively out of the 135 seats in the

regional parliament. The unionists are expected to rake in around 58 or 59

seats."

- The analysts are of the opinion that "even [if] the separatists do secure an

absolute majority a renewed push for unilateral independence remains unlikely,

at least in the coming years." 

- "[If] the separatists fail to secure a majority the issue of independence will

be put on the back burner, there is scope for a small relief rally in Spanish

assets."

- The Bund-Bonos 10Y spread is currently 1.9bp tighter at 105.2bp.