406: Keep an Eye on Spain tomorrow

Tomorrow's Spanish long-term (10 year) debt sale will be either catapult the market forward or give it another reason to back off. Obviously, people favor short-term German debt at the moment. Are they ready for the high risk Spainish debt sales? We'll have to wait and see if they bid the bonds down (raising the interest yields higher) or will pity Spain and buy the bonds where interst yields manageable for Spain in the long run. Touchy. I shall guess investors are still scared and won't want the debt at par if its yield is equal to others rated the same. The bond players will mark the price based on their risk assessment and lower their price if the coupon rate is above their expectations. I don't know at what coupon rate the bonds are being issued at, so, I will wait too, but on the side line. I'm not into Spain and its banks at the moment.