Spanish yields fall as vote leaves Catalan independence unclear
By Marius Zaharia and Paul Day
LONDON/MADRID Sept 28 (Reuters) - Spanish bond yields fell on Monday after regional elections in Catalonia gave secessionists a parliamentary majority but appeared not to have advanced a broader case for independence from Spain.
Spain's stock market gave up early gains but losses were smaller than on other major European bourses.
Stock and bond investors have been concerned that a breakaway movement gathering pace in the region could cause political and financial instability in the euro zone's fourth largest economy.
Secessionist parties won 72 of the 135 seats on Sunday in the legislature of Spain's wealthiest region, prompting the acting head of the regional government, Artur Mas, to claim the result as a "yes" for independence. He is expected to push ahead with his campaign.
The same parties won 47.8 percent of the vote, and analysts suggested that statistic had removed any immediate risk of a breakaway which, in view of constitutional hurdles and steadfast opposition from central government in Madrid, remains purely hypothetical.
The result, on a record turnout of 78 percent, was however likely to strengthen the hand of the regional government in talks with Madrid over devolutionary concessions, they said.
Spanish Prime Minister Mariano Rajoy said on Monday he was ready to collaborate with the next Catalan government but always "within the law". Continuación...