Mizuho A Little Wary Of Spanish Paper Ahead Of Election

Mizuho note that “the Spanish election that takes place on Sunday 23 July remains on a knife edge with the latest YouGov poll showing that the right-wing coalition of PP and Vox could take exactly half of the seats in Spain's lower house. The risk is therefore that with no clear majority, government initiatives are paralysed through a political impasse. This could detract from confidence and dent investment into Spain and weigh on Spanish bonds. Spanish bonds have been underperforming BTPs in the last months, which could continue in the near term if elections are inconclusive, and no coalition reaches majority.”