After Italy, the technical recession also arrives for Spain. The Madrid's GDP recorded the second consecutive quarterly drop: -0,3% between January and March 2012 compared to the last three months of last year, at the end of which the country had suffered an equal contraction. According to the tables published by Eurostat, the annual change in Spanish GDP also fell to negative values, with -0,4% over the first quarter.
Pressure and selling on Spanish government bonds returned to strength in the morning, leading to new increases in yields. On the 6,28-year Bonos, wage rates rose to 480% in the middle of the session, while the differential or spread with respect to the German Bunds widened up to 492 basis points. Yesterday the Spain-Germany differential had reached a peak of 476 basis points, closing at 420. Meanwhile, the spread between Italian BTPs and bunds stood at XNUMX.
