Adding to the good news embedded in tumbling Spanish bond yields (2-year note off 300 bps since...

|By:, SA News Editor

Adding to the good news embedded in tumbling Spanish bond yields (2-year note off 300 bps since July 24, 10-year off 115 bps) is better liquidity. Despite the slowness of August, the bid-ask spread on Spanish 10-year paper has narrowed to 6.2 bps from 8.7 bps. This is vital to bond investors who measure relative performance in even smaller increments.