Europe: Spanish f(ar)-right
The collapse of Spain’s centre-left government has sounded the alarm bells. The country will now go to the polls in April, its fourth election in eight years. However, this does not mean populist parties are about to take over. While Spanish bond yields are low, with European growth and inflation soft, there’s little reason for them to rise in the near term. The risk remains on the currency side. We remain short the euro versus the US dollar.