Following the interest rate hike in the eurozone—when the ECB raised its official rate by 0.25 percentage points to 2.5% last Thursday—eurozone debt has begun its ascent. Consequently, the yield on Spanish 10-year sovereign bonds has pierced the psychological 4% threshold for the first time since 2023, hitting levels last seen in 2013.
Specifically, the Spanish 10-year bond rose to 4.022% around 4:45 p.m. this Monday, trading near 2013 highs. As a result, the risk premium relative to German debt stood at 46.34 basis points.
The trend is similar globally: the yield on the 10-year US Treasury note stood at 5%, the German Bund at 3.543%, the French OAT at 4.516%, the Italian BTP at 4.434%, and the Portuguese 10-year bond at 3.919%.
Bankinter analysts note that rising energy prices “bode well for higher inflation for longer”—a factor that, combined with stronger economic resilience than anticipated months ago, justifies further tightening by central banks.
