Greece Spain, Germany and Portugal News

· Spain succeeds in selling debt but yields spike; high bid/cover assuring to markets; said it sold 2.35 billion euros ($3 billion) of the notes in an auction at an average yield of 3.532 percent (the yield compares w/2.816% when Spain last sold 5yr paper on Mar 4).  Bloomberg/DJ

· Spain - Spain's two largest political parties have agreed on a pact to clean up shaky savings banks that control half of the country's lending and deposits (WSJ) 

· Swiss franc soars after traders say the SNB has abandoned efforts to prevent the currency's rise - DJ

· Greece's parliament Thursday began debating a three-year, EUR30 billion package of austerity measures; vote expected later today; further strikes are scheduled today; measures are likely to pass with the government holding a 160-seat majority in Greece's 300-member parliament. – DJ

· Greece – EU’s Barroso sure all euro zone states to back Greek aid; he was sure all euro zone states would approve an aid package for Greece and that there would be a negative impact on the whole zone if there was not unanimity.  Reuters

· Germany’s Weber not on board w/QE - Weber said the threat of contagion from Greece’s fiscal crisis doesn’t merit “using every means,” rebuffing calls for the ECB to consider buying government bonds – Bloomberg

· Portugal - Portugal has “always” met its obligations to creditors and the surge in its borrowing costs won’t threaten debt repayments - Carlos Costa Pina, secretary of state for treasury and finance. – Bloomberg 

· Portuguese banks are building up reserves of asset-backed securities eligible as collateral for loans from the European Central Bank as borrowing in bond markets becomes more expensive (Fitch/Bloomberg