Spanish Bond Traders Should Keep Cava Corked Before Catalan Vote
- Catalan elections Thursday could move bonds in thin trading
- ECB closes its asset-purchase program for the year on same day
Photographer: artisteer/iStockphoto/Getty Images
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Spanish bond investors may need to hold off on the Christmas party until after voters in the errant Catalonia region go to the polls on Thursday.
The final election surveys indicate that parties pushing for a breakaway from Spain will gain a slender majority, while thin year-end trading and the European Central Bank ending its asset-purchase program for the year on the same day could exacerbate a negative market impact, according to Commerzbank AG. Longer-term, strategists still see further gains for the bonds.