Keep a short position in Spain's debt, says ING, as the yield on the 10-year bond trades back up around 6% again. "The reluctance of the Spanish PM to ask support to the EFSF/ESM [which is] almost treated as a done deal in the market, is creating upwards pressure on Spanish yields." The bank does not expect Spain to ask for aid this month despite the recent yield back-up. "On October 18-19 there will be the EU leaders summit and this is a good opportunity for Mr. Rajoy to ask for official support. Anyway, market pressure or political pressure will be needed to push Spain into the EFSF."
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