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© Reuters. The yield of the German bond is approaching positive rates
Madrid, Jan 7 (.) .- The yield of the German ten-year bond, considered the safest in Europe, rises again this Friday, to around -0.05%, which is approaching positive rates, a level at which it has not traded since the beginning of May 2019.
The profitability of German debt has risen sharply since last week, and has gone from -0.2% where it was at the end of 2021, to that current -0.05%.
However, the increases have been more pronounced in recent days, following the latest minutes of the meeting of the US Federal Reserve (Fed), which revealed the suggestion of several central bank governors about reducing the amount of Treasury obligations owned by the agency once interest rates begin to rise.
The possibility that the Fed will reduce its balance sheet is coupled with the fact that the agency, in order to control inflation, will accelerate the reduction of purchases of the massive bond program adopted at the beginning of the pandemic, while it could increase rates interest at a faster rate than anticipated.
Singular Bank analysts explain that investors react to this news by selling sovereign bonds.
In this context, the US debt has also risen in recent sessions, reaching 1,724% this Friday. The US bond closed 2021 at 1.512%.
In the rest of Europe, and following in the wake of the German bond, the yield on public debt has also risen.
In Spain, the ten-year bond is trading this Friday at 0.633% (0.56% on December 31, 2021); and in Portugal, at 0.543% (0.46%).
The Italian bond reaches 1,299% (1,150% at the end of the year); and in Greece, 1,493% (1,315%).
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