Spain's 10-Year Bond Yield at All-Time Low
World Economy

Spain's 10-Year Bond Yield at All-Time Low

Spanish 10-year bond yields hit a new record low on Monday, outperforming their eurozone peers, on hopes that the resignation of the Socialist party's leader at the weekend would help pave the way for the formation of a new government.
The leader of Spain's Socialists, Pedro Sanchez, resigned on Saturday after losing a vote triggered by a party revolt, a step that could pave the way for the formation of a new government and end a nine-month political deadlock, Reuters reported.
Sanchez had been in a stand-off with acting Prime Minister Mariano Rajoy's People's Party, frustrating efforts to form a government after two elections left the conservatives with the most votes but shy of a majority.
Spain's 10-year bond yield fell almost 2 basis points to record low at 0.866%. In contrast, yields in peripheral peers Italy and Portugal were both 1-2 bps higher on the day.
Spanish yields also outperformed top-rated German Bund yields, which were flat at around minus 0.12%.
"The hope is that we may now see the formation of a government in Spain," said Rabobank fixed income strategist Matthew Cairns. A decision by ratings agency S&P to affirm Spain's BBB+ credit rating with a stable outlook late on Friday also helped to lift sentiment towards Spanish bonds since some banks had highlighted the risk of a downgrade to the outlook.
S&P said the stable outlook reflected a view that momentum in the economy would continue. Spanish manufacturing activity grew in September at the fastest rate since April, a survey showed on Monday, with new orders expanding rapidly and little sign of any impact from the political impasse.
Overall trade in eurozone markets was subdued due to a holiday in Germany, the region's biggest economy.


Short URL : https://goo.gl/bsigoZ
  1. https://goo.gl/vBxsCC
  • https://goo.gl/GWzpDR
  • https://goo.gl/42l50B
  • https://goo.gl/nI3oxz
  • https://goo.gl/uvP4oT

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...

Add new comment

Read our comment policy before posting your viewpoints