©Reuters. The tougher tone of the Fed and the ECB raises the interest on the Spanish bond to 1.9%
Madrid, Apr 22 (.).- The ten-year Spanish debt yield exceeded 1.9% this Friday in the secondary market, after the Federal Reserve (Fed) said that it is possible that next week it will rise interest rates half a point.
According to Bloomberg data consulted by Efe, the Spanish ten-year bond has reached 1.914% at 10:00 am, although shortly after it has moderated the rise to 1.885%.
You have to go back to November 2015 to find a close of Spanish debt above 1.9%.
Sovereign bond yields have been rising since the start of the year on expectations that major central banks will raise interest rates to contain high inflation.
The Bank of England has already raised them twice and the Fed, which raised them a quarter point in March, has advanced that it plans to raise them several times in 2022.
Yesterday the president of the Fed, Jerome Powell, said already with the market in Europe closed that, at the organization’s meeting next week, “a rise of 0.5 points is on the table”.
Powell’s words come after the vice president of the European Central Bank (ECB), Luis de Guindos, did not close the door on raising rates in the eurozone in July.
De Guindos said in an interview with the Bloomberg agency that “theoretically anything is possible” when asked if a rise in interest rates is possible in July.
After the declarations of the person in charge of the BCE, the sovereign debt of the countries of the eurozone rose strongly yesterday and the Spanish bond closed with an increase of 10 basic points.
This morning the debt of the countries that share the euro has also started with increases that have subsequently moderated and at this time they are trading practically at the same point at which they closed yesterday.
The ten-year German bond, considered the safest, fell half a basic point, to 0.938%; the Dutch falls 0.6 basis points, to 1.182%; and the French fell 1 basis point, to 1.389%.
Greece’s debt exceeds 2.9% and Italy’s is close to 2.6%, while Cyprus’s is above 2.2%.