Fernando Rodríguez | The Treasury will issue its first sovereign green bond “in the second half of this year,” as announced by Pablo de Ramón-Laca, Director General of the Treasury and Financial Policy. He explained that this first bond will form part of the Treasury’s Green Bond Issuance Programme, which aims to be a “structural component of the Treasury’s financing policy.”
Bonds from the European Union have become popular among Japanese investors. Already in July, Japanese funds bought record amount of Italian debt. However in September, they purchased a net 235 billion yen ($2.15 billion) of Spanish bonds, while selling a net 127.7 billion yen of Italian paper during the month, the data from Japan’s Ministry of Finance showed.
On Thursday, the Treasury raised €6.535,6 billion in a new auction of long-term bonds, exceeding the €6.5 billion top of the range. Total demand was EUR 12.407,77 million, which is 1.9 times the amount finally awarded. However, costs have risen once again and even doubled the yield on the bonds.
Markus Allenspach (Julius Baer) | We maintain our Overweight on EUR low-grade bonds against the backdrop of low money-market rates and remote recession risks. Moreover, we share the view of the market that the odds for a new corporate-sector purchase programme of the European Central Bank are rising, which could additionally lift bond prices.
Spain’s public debt stood at 1.062.472 trillion euros at the end of September, representing 99.4% of GDP, and compared with the government’s full-year 2015 target of 98.7%. But is this debt burden really so heavy, when the average cost of debt stood at 0.87% at the end of October, compared with 1.52% in December 2014?
UBS | Pro-independence parties in Catalonia have won a majority of seats – but not of the total of votes cast. As a result, we would advise investors to remain cautious about buying Spanish sovereign debt until some clarity emerges over the next steps of the new regional government.
The Corner | March 2, 2015 | Concerns about the impact that the ECB’s quantitative easing programme will have persist ahead of monthly purchase of €60 billion in sovereign bonds.
MADRID | The Corner | Thursday was shelter assets’ day due to the tragedy of the Malaysian Airlines passenger hit by a missile in Ukraine, the hardening of the Russia sanctions and the worsening of the conflict in Palestine, analists at Bankinter commented. The Bund reached a new historic low of 1.14% (the previous record was 1.17%) and the yen and Swiss franc appreciated up to approx. 137 and 1.214 respectively.
MADRID | By Julia Pastor | Medium sized Spanish entity Liberbank, born from four vanished savings banks hit by the crisis, reflected on Tuesday the renowed interest of foreign investors in Spain’s banking sector. The lender was able to turn its 2012’s losses of €1.8 bn into profits of 48 million in 2013.
MADRID | The Corner Team | Spain’s borrowing costs dropped at a double bond auction on Thursday after the U.S. Fed announced it will not start tapering yet. The 3-year bonds were sold at an average yield of 2.225%, compared with 2.636% seen at the previous auction. Madrid expects that this will leave some margin to offset possible negative deviations elsewhere or to better fulfill the country’s deficit target (6.5% for 2013).