Tue, Oct 03, 2017 - Page 11 News List

Spanish bonds fall to three-month low on Catalonia vote

Bloomberg

Spain’s benchmark bonds fell to their lowest level in almost three months after Catalan separatist leaders signaled they might be moving toward a unilateral declaration of independence.

The nation’s 10-year bonds snapped a two-day rally as regional leaders suggested the declaration might come as early as this week.

“The sell-off makes sense, for today at least, given the headlines over the weekend, and therefore perceptions of increased domestic political risk and uncertainty,” London-based Standard Chartered PLC strategist John Davies said.

The yield on Spain’s 10-year bonds rose nine basis points to 1.7 percent at 9:11am in Barcelona, the highest since July 13.

The extra premium that investors demand to hold Spanish 10-year government bonds over similar-maturity German bunds, the eurozone’s benchmark sovereign securities, widened five basis points to 119 basis points.

This story has been viewed 889 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top