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FXstreet.com (Barcelona) - Ahead of Jackson Hole it was the renewed Spanish wobbles in focus yesterday. The regional government of Valencia was said to need €1.0B more in aid. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, "The region will now request €4.5B from the central government which brings the total amount requested from the three Spanish regions (Valencia, Murcia, Catalonia) to €1.01B - the news comes right after Catalonia's aid request earlier this week and is another timely reminder of the Spanish challenges ahead."

Meanwhile PM Rajoy is showing few signs of being in a rush to trigger a formal request for EU support. The PM reiterated that he is waiting for more details from the EU and ECB with regards to a potential bond-buying program before deciding on whether to request financial assistance. In a press conference following his meeting with Hollande yesterday, Rajoy said "When it's known exactly what's on offer, I will take a decision." - Spanish 10yr bond yields rose 13bps to 6.54%.

Staying on Spain a Moody's analyst said that they are "monitoring developments very closely". Overnight Moody's issued a statement clarifying that the review of Spain's Baa3 rating will likely continue through to the end of September because of pending information on the scope of bank recaps, the nature and size of support mechanisms available under the ESM in light of the German constitutional court's ruling, and potential changes and additions to the existing crisis-management framework.

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