January 26, 2021

The Spanish risk premium opens upwards, by 127 basis points

The Spanish risk premium opens upwards, by 127 basis points



The Spanish risk premium has started today's session upwards, by 127 basis points, two more than yesterday, after the rebound registered by the interest of the Spanish 10-year bond, up to 1.699%, from the previous 1.696%.

For its part, the so-called German "bund", whose difference with Spanish determines the risk premium, has fallen to 0.438%, from 0.448% at the close of yesterday.

In Italy, country risk has added five basic points in the opening, to 309, waiting for the European Commission to discuss today if it asks the Executive a new draft budget, something never seen before, after studying the response of Rome to their warnings that accounts violate European standards.

Yesterday, the Italian government defended its General Budgets for 2019, which foresee an increase in public spending, although it promised not to further increase the country's debt, which currently exceeds 130% of GDP.

"The Italian Government is aware that it has chosen a direction of budgetary policy that is not in line with the Stability and Growth Pact standards, which has been a difficult but necessary decision in the light of the persistent delay in the recovery of the levels of the GDP ", argued the Italian Government.

For its part, in a day in which Eurostat published data on deficit and debt in the European Union in the second quarter and employment in the regions, the risk premium of Greece has opened by 391 basis points, two more than yesterday, like that of Portugal, which has risen to 159.

The debt default insurance ("credit default swaps"), amount that has to be paid to guarantee an investment of ten million dollars, have been maintained for Spain at 124,200 dollars, and have risen for Italy to 296,090 dollars.

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