Alexis Tsipras’s bargaining tool weakened

Alexis Tsipras’s claim that a financial collapse in Greece would drag down the rest of the eurozone is looking increasingly like a hollow threat.

While the yield gap widened between Spanish and German debt after a weekend that saw little progress in talks between Tsipras’s Greek government and international lenders, the increase was only the biggest since May 28.

The spread is close to the average of the past year, showing limited contagion compared with the blowout in Spain’s borrowing costs when Greece last faced a eurozone exit in 2012.