A no-confidence vote to oust Spanish Prime Minister Mariano Rajoy will be held June 1, after a one-day debate on the matter in parliament, Reuters reported.
Rajoy's six-year rule is under threat after the opposition Socialists filed a motion to unseat Rajoy following the conviction of several people with links to the center-right ruling People's Party over a graft case.
Bonds fell 0.73% and yields on 10-year Spanish bonds jumped nearly 8 basis points to 1.526% as of 3:04 p.m. central European time. Spain's benchmark stock index, IBEX 35, shed 0.73%.
Rajoy, who survived a no-confidence vote in June 2017, on May 25 resisted calls to hold snap elections in the country, saying the corruption convictions did not affect anyone from his government.
Opposition party Socialists, which proposed the vote, may struggle to find enough support in parliament for the vote, Reuters reported. Socialists leader Pedro Sánchez has said he would call a general election if his party wins the no-confidence vote. Liberal party Ciudadanos, which is most likely to win a snap election, urged Rajoy again on May 28 to call early polls.
Ciudadanos said May 26 that it was ready to team up with the Socialists to support a neutral candidate, Reuters reported.
Shares of CaixaBank SA, Banco Bilbao Vizcaya Argentaria SA and Banco Santander SA were down 1.13%, 1.42% and 2.18%, respectively, around 3:20 p.m.
