DEBT MARKET

Key bond yield at 2010 level despite Lisbon budget woes

Japan stimulus program sees investors flock to buy up Spanish sovereign debt

The Spanish sovereign debt market shrugged off the setback meted out by the Constitutional Court to Portuguese Prime Minister Pedro Passos Coelho’s austerity program, preferring instead to focus on the economic stimulus plan unveiled by Japan.

The latter sparked an increase in investors’ appetite for Spanish government bonds, leading to a fall in yields, which in the case of the benchmark 10-year bond hit its lowest level since October 2010.

A flood of buy orders at the outset of the session pushed the 10-year bond yield to 4.64 percent. That in turn helped narrow the spread with the German equivalent by 11 basis points from Friday’s closing level to 342. Italy also made up ground, with its risk premium falling to 310 basis points. However, the rally started to peter out later, with Spain’s risk premium ending the day down just three basis points at 350 basis points.

The yield on two-year government bonds, which would enter into the scope of any sovereign debt purchases by the European Central Bank, dropped below two percent for the first time since October three years ago — just before Ireland became the second euro-zone country after Greece to ask its European partners for a bailout.

The main driving force behind the improvement has been the fact that the market is awash with liquidity and Spain still offers attractive yields.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

Avatar
Periodista de EL PAÍS

Últimas noticias

Ver todo el día

Encontrado muerto un hombre en una carretera de Barakaldo

El cadáver ha sido encontrado en Burtzeña y el hombre tenía un golpe en la cara

Logroño fabrica el ‘plástico del futuro’

Avanzare es el mayor productor mundial del prometedor nanomaterial grafeno

Asturias veta el proyecto de la mina de oro de Salave

El Principado niega los permisos a los promotores por el impacto al medio ambiente. La empresa baraja reclamar judicialmente contra el Ejecutivo autonómico

Muere uno de los heridos en la pelea a navajazos en Barcelona

EP

Dos hombres de nacionalidad armenia acuchillan a tres compatriotas en Barcelona

LATIN AMERICA

US and Cuba to start talks to normalize relations

Announcement from White House comes after news that US contractor Alan Gross has been freed by Havana

“Isolation has not worked,” says Obama in TV address

US and Cuban presidents take to airwaves to make simultaneous statements on the way forward for relations

Colombia’s FARC guerrillas declare unilateral and indefinite ceasefire

Government must decide whether to do the same or risk ending truce

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana