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©Reuters. The Spanish bond reaches 1.7%, the maximum in more than three years
Madrid, Apr 8 (.).- Spain’s ten-year bond interest rate reached 1.723% this Friday in the secondary market, the highest level since mid-October 2018, although it has subsequently moderated and closed in the 1.698%, according to market data consulted by Efe.
The yield on Spanish debt has risen this week by more than two tenths and has accumulated five weeks on the rise due to the turn of the major central banks towards a tougher monetary policy.
In the rest of the eurozone countries there has also been a rise in the yield of their bonds and that of Germany, considered the safest, closed this Friday at 0.702%, a level that it had not reached since February 2018.
Currently the only 10-year bond of the countries sharing the euro with a secondary market yield below 1% is German.
Dutch debt ended the week at 1.005%, France’s at 1.257%, while Greece’s is close to 3% (2.866%) and Italy’s at 2.5% (2.394%).
The interest increases are due to the change towards a more conventional monetary policy after the rate cuts and the stimuli put in place in the pandemic.
However, the turn to more restrictive monetary positions is predictably going to be harder than expected a few months ago due to high inflation, which has also accelerated with the war in Ukraine and the sanctions against Russia and is at levels not seen since the 1980s.
This week the minutes of the March meetings of the Federal Reserve and the European Central Bank (ECB) have been published. In the first case, a reduction in the bonds purchased during the pandemic is already being advanced since May, which could coincide with bulging interest rate rises.
Those of the ECB showed that some members of its council thought that the way had to be paved for a first rise in the third quarter, when until now analysts were considering the last quarter or 2023.
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