"An economy in recession like Spain can't cut its deficit by 6 percentage points, it's impossible"
- Jose Carlos Diez, chief economist at brokerage Intermoney SA
Spanish bond yields rose on Tuesday to the highest level since the introduction of the single currency on concern the nation will miss budget deficit targets for 2012/2013 and 100 billion euro bailout is not enough to stabilize the banking sector.
Yields on 10-year government securities rose to 6.70, up by 0.19 basis points from the previous day.
"An economy in recession like Spain can't cut its deficit by 6 percentage points, it's impossible," said Jose Carlos Diez, chief economist at Madrid-based brokerage Intermoney SA.
"Does Brussels want us to change the law of gravity as well?"
"Euro-zone politicians need to take further steps forward to reduce the risks there and we think that further steps will be required in the area of public finances," Parker said. "We believe Spain will miss its budget deficit targets again this year and next by a substantial margin."
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