Early kneejerk exuberance in Cable and European bond risk is rapidly unwinding as the reality of a revolting youth raise concerns over social stability. Nowhere is that more evident than in Spain this morning as pro-Catalan independence supporters push the government for a referendum on their secession in November: *CATALANS SAYING LOUDLY BUT GENTLY THEY WANT TO DECIDE: MAS *SPAIN GOVT OPEN TO DIALOG, HAS TO COMPLY WITH LAW: SAENZ *REFERENDUMS ARE NOT POSSIBLE IN SPANISH LAW, DEPUTY PM SAYS Catalan President Artur Mas says it is a mistake to think the Scottish "No" votes casts a shadow over Catalonia and is threatening Rajoy if he blocks the vote. Spanish bond risk is up 12bps off the lows of the day. As Bloomberg notes, *MAS SAYS SCOTS-STYLE REFERENDA ONLY WAY TO RESOLVE CONFLICTS *MAS SAYS CATALONIA PUSHING ON WITH INDEPENDENCE VOTE *MAS SAYS MISTAKE TO THINK SCOTS NO CASTS SHADOW OVER CATALONIA *MAS SAYS BLOCKING VOTES CREATES DIVISIONS *MAS SAYS RAJOY IS FUELING CATALANS' AVERSION TO SPANISH STATE *MAS SAYS HE'LL CALL MEETING OF ALLIES IF RAJOY BLOCKS VOTE *MAS SAYS RAJOY CAN'T HOLD BACK CATALANS JUST WITH LAW But, the government says... *SCOTS VOTED ACCORDING TO LEGALLY ESTABLISHED PROCESS: SAENZ *REFERENDUMS ARE NOT POSSIBLE IN SPANISH LAW, DEPUTY PM SAYS *SPAIN GOVT OPEN TO DIALOG, HAS TO COMPLY WITH LAW: SAENZ So change it... *CATALANS SAYING LOUDLY BUT GENTLY THEY WANT TO DECIDE: MAS *CATALONIA WANTS TO HOLD VOTE IN AGREEMENT WITH SPAIN: MAS *REFERENDUM WOULD SOLVE CATALAN QUESTION, MAS SAYS The Reaction - spanish bond risk is rising... and Cable has roundtripped last night's gains as new policies are better understood * * * It appears this secession movement is far from over... Charts: Bloomberg