Catalonia Yield Premium Shrinks Before Thursday Deadline: ChartBy
Holders of Catalonia’s 2020 bonds may have stopped sweating and might even feel optimistic going into a Thursday deadline set by Spain’s central government for the region to withdraw its independence claim. The securities’ yield spread to Spanish government notes has narrowed to about 310 basis points. The Catalan bond’s bid-ask difference has shrunk to a still-high 28 basis points from a one-year average of 30 basis points.
— With assistance by Sheldon Reback