- Cristobal Montero says GDP will fall 0.5% in 2013 vs +0.2% April forecast
- Unemployment will hit 24.6% vs 24.3% forecast
- Interest costs higher than expected in budget
- Spain will pay 9.1B euros more in interest in 2013
There is also chatter that Valencia is seeking a bailout. Spanish 10s continue to blow out, up 21 bps to 7.22% now. Five-years are at a record. The Spanish IBEX stock market index is down 3.3% and Italy is down 3.5%.
