[ad_1]
© Reuters. The profitability of European bonds falls due to the collapse of the stock markets
Madrid, March 13 (.).- The yield of the sovereign debt of the main countries of the euro area fell by around 20 basis points due to the flight of variable income assets, greatly affected by the intervention of the US banks Silicon Valley Bank and Signature Bank.
The interest on Germany’s ten-year bond, considered the safest, fell back shortly after 11:00 to 2.282%, 22 basis points less than on Friday and a level at the beginning of last February.
Similarly, the yield on the sovereign debt of the Netherlands and France fell 20 and 19 basis points, to 2.651% and 2.820%, respectively.
In the Mediterranean countries, the falls are slightly lower and the ten-year bonds of Spain and Portugal fell by some 18 basis points, to 3.358% and 3.171%.
In Italy and Greece, with yields above 4.1%, the declines remain between 10 and 15 basis points.
Fears that the problems at Silicon Valley Bank and Signature Bank could spread have caused major risk aversion and investors are leaving equities to focus their investments towards sovereign bonds.
The main indices of the European stock markets registered strong falls at the same time, led by FTSE, which lost just over 4%. Madrid leaves 3.5%; Paris and Frankfurt around 2.5%, and London just over 2%.
Risk premiums (the differential with the German bond) rise but to a much lesser extent than the interest on the debt. Those of Portugal and Spain around two basic points, up to 88 and 105; that of Italy about 8 basis points (187), and that of Greece slightly more than one tenth, and stands at 190.
[ad_2]