The yield on the ten-year Spanish sovereign bond in the secondary market hit a new historic low of 0.024% on Tuesday, below the August 2019 low of 0.035%. While the interest on the equivalent German bond was -0.611%, the risk premium offered to investors by Spanish bonds with respect to the ‘bund’ reference was around 63.77 basis points. The Portuguese bond yield fell into negative territory for the first time, standing at -0.013%.
Spanish risk premium
MADRID | The Corner | Despite the good performance of Western equities, many values are beginning to show signs of vertigo that could lead them to correct some of the gains of the past weeks in the coming days. In addition, the fact that trading volumes are shrinking as indexes advance is a clear sign that there are investors who feel dizzy levels. Therefore, Link experts point out, we shouldn’t rule out some small reductions in the short term even if it’s in an upward trend context.
MADRID | By Julia Pastor | Spanish PM Mariano Rajoy started campaigning for the upcoming European elections on Tuesday. In a radio interview he announced that the country’s unemployment rate has started reversing since job destruction is slowering. The fall of the country’s risk premium and 10-year bonds yields are crucial for companies financing abroad, he recalled. Even though Brussels forecasts are just estimates, they do support the idea that Spain could become the driver of peripheral EU with a growth over Italy, Portugal and even France.
MADRID | By Francisco López | The risk premium has moved from being a huge torment for Spanish decision-makers, to making headlines showing a recovery of the international confidence in Spain’s economy. The interest rate of the Spanish 10-year bond is at its lowest since 2009, the differential with Germany is around 190 basis points and Ibex 35 widely exceeds 10,000 points.
MADRID| By Julia Pastor | Spain’s credit quality and solvency is increasingly improving. The country’s risk premium closed at 219 basis points on Tuesday to its lowest level since June of 2012, and under Italy’s. Also Spanish 10-years bonds neared 4% yield, more than double than the German ones. Public debt investors do not have much better options.
MADRID | Jorge Holgado at Capitalmadrid | When premium risks go high in a country not everyone loses: insurance companies did a good business last year with Spanish debt, although investment in fixed income is not a short-term strategy of the sector.
MADRID | By Tania Suárez | Financial agent at GVC Gaesco, Gonzalo de Orovio spoke to thecorner.eu about central banks and why a strong euro may damage some economies in the eurozone but sends a good vibe to the markets.