The markets are giving Spain the benefit of the doubt if the latest bond auction is an guide.
Yields fell sharply as dealers snapped up nearly four billion euros of 2- and 5-year bonds at 3.282 percent. In July money was costing the Spanish nearly two percent more.
But it could be the calm before the storm as traders are expecting Spain to go to the EU for a full-blown rescue. They are convinced it is only a matter of time.
Pressure remains as the day-to-day trend is rising as some investors lose patience, with analysts indicating the factoring-in of a rescue will only last so long without the rescue itself.
However Spain is well-ahead of schedule meeting its annual borrowing requirement, having issued 86 percent of its targeted medium and long-term debt for the year.