The Spanish risk premium relaxes to 134 basis points



The Spanish risk premium, difference between the ten-year Spanish bond and its German counterpart, is relaxed on the day of this Monday to 134 basis points, eight less than last Friday, according to market data collected by Efe.

The Spanish risk premium, which last week reached 157 basis points (maximums since June 2016), is reduced after the profitability of the Spanish 10-year bond has fallen with outside, to 0.887%, from 1.044 % previous.

The interest on the German bond stands at -0.472%, slightly higher than the -0.475% previously.

The yield on Spanish debt has started to drop a week in which the European Central Bank (ECB) will hold its interest rate meeting (Thursday), a meeting from which investors expect more stimulus measures to minimize the economic effects of the coronavirus.

Today, the Bank of Japan has announced the expansion of its government and corporate bond purchase programs as part of its monetary easing strategy to deal with the pandemic.

As for the risk premiums of other European countries called “peripherals”, that of Italy, which has announced the start of its lack of precision gradually from May 4, falls to 222 basis points (231 on Friday), with his bond yield at 1.753%.

Greece’s differential falls to 264 (277 previous), and Portugal’s to 147 basis points, from 155 that marked on Friday.

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