MADRID, 23 May. (EUROPA PRESS) –
The risk premium offered to investors in Spanish 10-year bonds with respect to their German counterparts has registered a rebound this Monday that has led the spread to register its highest level since May 2020, exceeding 114 points.
Specifically, although the risk premium has started the day at 110.6 points, below the 113.8 integers in which it closed on Friday, after the intervention of the president of the European Central Bank (ECB), Christine Lagarde , the spread reached an intraday high of 114.7 points after the mid-session.
The Spanish premium has not been at this level since May 2020, right in the worst part of the pandemic. The increase registered this Monday represents a new rise. In recent months, secondary debt market yields have been on the rise, as have spreads. In January, the Spanish risk premium stood at around 67 basis points.
Lagarde has pointed this Monday to the meeting of the Governing Council of the entity scheduled for next July as the right time to undertake the first rise in interest rates in the euro zone in more than a decade.
“I expect net purchases under APP (the program) to end very early in the third quarter. This would allow us to raise the rate at our July meeting, in line with our future guidance,” the Frenchwoman said in a published article. on the ECB blog.
With regard to the yield obtained in the secondary market by Spanish 10-year bonds, this Monday they started the session at 2.113%, after the 2.082% in which they closed on Friday. The maximum intraday has been located at 2.123%.
On its side, the ‘bund’, the German bond with a maturity of a decade, registered a yield of 0.976% at the opening, although during the first hours of the session it registered an intraday maximum of 0.996% and a minimum of 0.931% .
Regarding other euro economies, Italian bonds have started the session at 3.011%, with highs of 3.044%; while the Greeks have reached 3.747%, after opening at 3.741%. The yield on Portuguese bonds maturing in ten years was at the opening of 2.144%, although it has come to trade at 2.176%.
In recent months, in a context of high inflation and monetary normalization, the price of sovereign bonds in the secondary markets has registered increases in their yields. In December, the German bond was quoted at -0.388%, while the Spanish one was at 0.309%; the Italian, at 0.895%; the Greek, in 1,206%; and Portuguese, at 0.264%.
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