MARKETS CAUTIOUS: Investors reacted warily to comments by Spanish Prime Minister Mariano Rajoy that he won't accept certain conditions in return for a European Central Bank proposal to buy Spanish government bonds. He didn't specify, but said there are "certain red lines" he won't cross.
PENSIONS A CONCERN: Rajoy said he does not want to cut Spanish pension benefits, because retired Spaniards with no way to supplement their monthly state payments would be hit harder than the rest of the country's population.
INTEREST RATES: Analysts warned that the drop in Spain's borrowing rate seen since last week, when the European Central Bank outlined its plans for buying troubled nations' bonds, could reverse if Rajoy resists pressure to accept certain conditions.
