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©Reuters. The interest on European debt moderates after hitting highs in the session
(Updates EC5133 with market closing data)
Madrid, Oct 21 (.).- The yield of the sovereign debt of both the US and Europe has continued to climb in the face of the forecast that the central banks will maintain an aggressive monetary policy and has reached highs during the session to moderate after closing.
According to Bloomberg data collected by Efe, it reached 3.62% a little before noon (maximum since February 2014), to moderate at the close to 3.525%.
The interest on German debt, considered the safest in Europe, advanced in the morning to 2.488%, its highest level since July 2011, but ended up closing at 2.408%.
In the United States, the yield on its ten-year debt rose during morning trading to 4.27%, which was a new maximum since the end of 2007, although at the close of the European trading session the yield was reduced to 4, 17%.
Analysts at Banca March have explained that the mix of policies and aggressive comments on interest rates from central banks and the increasingly likely arrival of the economic recession means that the debt continues without finding a floor.
They have highlighted that the required return on the US ten-year bond accumulates eleven weeks of increases, after marking a minimum of 2.51% in August.
The yields of the US debt increased strongly this Friday after yesterday the president of the Philadelphia Federal Reserve, Patrick Harker, assured that the rate hikes that have been carried out by the Fed, until now, have done little to keep inflation in check, so further increases will be needed.
Harker expects rates to be well above 4% by the end of the year.
While waiting for the Fed meeting to be held on November 2, previously, on October 27, the European Central Bank (ECB) could announce a new rise in interest rates of 75 basis points, as forecast by the market.
In the rest of Europe, the return on Italy’s ten-year bond falls to 4.72% and that of Portugal to 3.42%; while that of Greece moderates its rise to 5.01%.
In the United Kingdom, after the resignation yesterday of Prime Minister Liz Truss, the reference bond rose to 4.03%, fourteen basis points more than on Thursday.
/jmj
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