The Spanish bond maturing in ten years exceeds 4% for the first time since January 2014 and pushes the entire Spanish debt curve in the longer maturities. In fact, all sovereign debt over ten years is already above 4%.
The new high seen in Spanish debt coincides with the publication of new inflation data in Spain. The consumer price index (CPI) jumped to 3.5% in September, two tenths more than expected by the market and confirming the upturn in prices for the second consecutive month. Now, the forecasts of the market consensus, gathered by Bloomberg, predict inflation at 3.6% year-on-year at the end of October, while the Bank of Spain has already predicted that prices could also rise in the coming year.
