The interest of the Spanish bond reaches maximums since 2014, above 3.6%

MADRID, 21 Oct.

The interest of the Spanish bond reaches maximums since 2014, above 3.6%

MADRID, 21 Oct. (EUROPA PRESS) -

The return required in the secondary debt market for the Spanish bond with a ten-year maturity exceeded this Friday the threshold of 3.6% for the first time since 2014 given the prospects that the European Central Bank (ECB) will continue with its firm path of rate hikes, which could result in an increase in the price of money of 75 basis points at the meeting on October 27 and further hikes at subsequent meetings.

In this way, the yield of the ten-year Spanish bond climbed to an intraday maximum of 3.651%, compared to 3.529% at the close of yesterday, marking the highest cost of financing since February 2014. The ten-year bond of Spain had started 2022 with a return of 0.605%.

The 'bund', the German bond with a ten-year maturity and the reference for the debt of the Old Continent, also registered a strong rise in profitability and came to overcome this Friday for the first time since July 2011 the barrier of 2.5 %, reaching a yield of 2.5120%, compared to 2.4010% yesterday's close.

Despite the substantial increase in interest rates on debt, the risk premium offered to investors by Spanish bonds with respect to the 'bund' remained stable at around 115 basis points.

For Italian 10-year bonds, the required yield increased more sharply, approaching 5%. Specifically, the yield on Italy's ten-year debt came to offer interest this Friday of 4.899%, the highest since 2012, after having closed yesterday at 4.735%. At the start of 2022, the interest on the Italian ten-year bond was 1.196%.

On the other side of the Atlantic, with the prospect of an increase of another 75 basis points in the reference interest rate of the United States Federal Reserve at its November meeting and the increase in fear of a recession in the country, the profitability of debt has also skyrocketed.

In this way, the yield on the 10-year Treasury bond stood at 4.2843%, the highest level since 2008, while in the case of two-year United States bonds, the interest rose to 4.639%, at a maximum of 15 years.

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