Spain risk premium rises to maximum in two years

Risk premium offered to investors Spanish 10-year bonds According to its German counterparts, it rebounded this Monday, which led the differential to record its highest level since May 2020, surpassing 114 points.

Especially even though the risk premium has started the day 110.6 pointsBelow the 113.8 integers it closed on Friday, the gap reached its intraday maximum after the average session averaged 114.7 points after the intervention of European Central Bank (ECB) President Christine Lagarde.

The Spanish premium has not been at this level since May 2020, at the worst time of the pandemic. The increase recorded this Monday represents a new high. Secondary debt market yields and spreads have been on the rise in recent months. Spain risk premium in January 67 basis points.

Lagarde pointed to the unit’s Governing Council meeting, scheduled for next July, this Monday as the right time to undertake the first rate hike in the eurozone in more than a decade.

“I expect net purchases under the APP (program) to end very early in the third quarter. our future direction“, says the French in an article on the ECB blog.

Regarding the performance achieved secondary market For Spanish 10-year bonds, they started the session this Monday at 2.113% after closing 2.082% on Friday. The maximum intraday rate was determined as 2.123%.

On his side,bundle‘, the ten-year German bond posted yields of 0.976% in the first hours of the session, despite an intraday maximum of 0.996% and a minimum of 0.931%.

Compared to other Euro economies, Italian bonds started the session at 3.011% with highs of 3.044%; Greeks reached 3.747% after opening at 3.741%. The yield on Portuguese bonds, which matured in ten years, was at 2.144% at the opening despite trading at 2.176%.

In recent months, in a high context inflation and monetary normalization, the price of government bonds in the secondary markets was recorded. increases in yields. In December, German bonds were -0.388%, Spanish bonds were 0.309%; Italian, 0.895%; Greek, 1.206%; and Portuguese, 0.264%.

Source: Informacion


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