16 Jun 2015
Eurozone bond yields drop, spread with Germany widens
FXStreet (Mumbai) - The Greek impasses have brought back worries about the contagion in the Eurozone.
The bonds in Spain, Italy and Portugal are down after falling sharply in the previous session. The yield on the Spanish 10-year bond currently trades 1.5 basis points higher at 2.395%, while the Portugal 10-year yield rose 1.6 basis points to 3.24%.
Spread with German bonds highest in 2015
All of a sudden, buying periphery nations’ debt has become a risky trade. The extra yield, or spread, investors demand to hold Spanish, Italian, and Portuguese bonds relative to safe-harbor German debt—a measure of the risk investors see in holding the debt—has climbed to the highest level this year.
Spanish yields have been hit hard, with the benchmark yield moving above the Italian yield currently trading at 2.326%.
The bonds in Spain, Italy and Portugal are down after falling sharply in the previous session. The yield on the Spanish 10-year bond currently trades 1.5 basis points higher at 2.395%, while the Portugal 10-year yield rose 1.6 basis points to 3.24%.
Spread with German bonds highest in 2015
All of a sudden, buying periphery nations’ debt has become a risky trade. The extra yield, or spread, investors demand to hold Spanish, Italian, and Portuguese bonds relative to safe-harbor German debt—a measure of the risk investors see in holding the debt—has climbed to the highest level this year.
Spanish yields have been hit hard, with the benchmark yield moving above the Italian yield currently trading at 2.326%.