© Reuters. The Spanish bond falls 0.4% for the first time since the end of September
Madrid, Nov 19 (.) .- The profitability of Spanish sovereign debt fell sharply this Friday, by 10.9%, and stood below 0.4% for the first time since the end of September.
At 11.30 a.m., the yield on the Spanish ten-year bond, which is the benchmark, drops to 0.393%, and this on a day in which the president of the European Central Bank (ECB), Christine Lagarde, has warned that it is not advisable to “withdraw monetary stimulus prematurely in the euro area” because the current high inflation will subside.
Likewise, he reiterated that “it is very unlikely that the conditions will exist to raise interest rates next year.”
A few days earlier, she was also convinced that current inflationary pressures will subside over time and that the ECB will achieve its 2% inflation target in the medium term.
It was precisely these inflationary tensions that caused an increase in the profitability of European sovereign debt. In the case of Spain, the national bond rose on November 1 to 0.630%, the highest at the close of a session since October 2020.
Spanish sovereign debt maintains the same trend as that of Germany (considered the safest in Europe) since the yield on its ten-year bond, known as the “bund”, today also falls by more than 10%, to -0.306%.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.