Draghi's QE Buys Some Time for Spain After Election Stalemate
- Spread over bunds widened just six basis points since vote
- Political stalemate lingers as Socialists rebuff Rajoy
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The sound of bickering among Spanish politicians is being drowned out by Mario Draghi, at least when it comes to the bond market.
Spain’s election on Dec. 20 ended a four-year majority for Prime Minister Mariano Rajoy and left a deadlock over who will form the next government as parliament reconvenes this week. The European Central Bank’s bond purchase program, known as quantitative easing, is buying politicians time as they argue over who should run the euro region’s fourth-biggest economy. The yield on 10-year bonds compared with German bunds has risen just six basis points since the vote.