© Reuters. Eurozone sovereign debt yield plunges after ECB
(Updates EC4476 with the data at the close of the market)
Madrid, Feb 2 (.).- The yield on ten-year eurozone members’ debt, the benchmark, fell by more than two tenths this Thursday after the rise in interest rates and the European Central Bank (ECB) maintain its balance sheet reduction plan.
At the close of the market, the yield on the ten-year German bond, considered the safest in Europe, fell 21 basis points and closed at 2.067%.
In the case of Spain, the yield on its ten-year debt has also fallen to 2.982%, almost three tenths below the day before, while in Italy the fall is close to four tenths, to 3.890%.
The interest on Portuguese bonds fell by the same amount as those of Spain (29 basis points) and stood at 2.888% and that of Greece, 28 basis points, at 3.993%.
The ECB has decided today to raise interest rates by half a percentage point, bringing them to 3%, and has announced that it intends to raise them by the same amount in March.
On the other hand, it has also announced that it will continue to fully reinvest the asset purchase program, and that as of March, the balance of its portfolio will decrease by 15,000 million per month until the end of June 2023.
The subsequent pace of portfolio reduction will be determined later, according to the ECB.