LONDON, Oct 16 (Reuters) - The gap between Spanish and German 10-year borrowing costs widened in early trade on Monday as uncertainty mounted over Catalonia’s bid for independence ahead of a key deadline.
Catalan leader Carles Puigdemont has until 10:00 a.m. local (0800 GMT) on Monday to clarify whether he is calling for the region’s independence from Spain, with Madrid threatening a return to direct rule if his stance remains ambiguous.
Spain’s 10-year government bond yield -- which moves inversely with price -- rose 2.5 basis points in early trade and the spread over Germany widened 2 bps.
Spain’s IBEX stock futures were down 0.4 pct ahead of the open. (Reporting by Abhinav Ramnarayan, Editing by Georgina Prodhan)