***Spanish government debt is stable this.....>

SPAIN: ***Spanish government debt is stable this morning. 

- Barclays economists point out two principle directions. A declaration of

independence that provides the central government with the option of triggering

Article 155, and article that permits Madrid to step in and run finances, police

etc in Catalonia. The second option is to not unilaterally declare independence

and head toward fresh regional elections, providing "greater bargaining power in

negotiations with the central government of Spain, as well greater international

support."

- Puigdemont has requested an international mediator sponsored by the EU to

resolve the conflict.

- PSOE Sanchez is also pushing PM Rajoy to enter into talks with Puigdemont and

for the moment, there does appear to be a push to talk the issue through rather

than immediately escalate. 

- Catalan's leader, Carles Puigdemont says a declaration of independence will

not occur for several days. However, a day of protest has been called today in

Catalonia, specifically against the police action during the referendum.