Purchases are reactivated in the debt market with the return of the US market after Thanksgiving

The fixed income market had some atypical sessions this week due to the Thanksgiving holiday in the United States. However, with the reopening of Wall Street this Friday, purchases once again prevailed in both US and European sovereign bonds. He Ten-year sovereign bond fell to 4.21% profitability in the secondary market, six basis points below this week’s starting point. However, European debt registered higher buying pressure.

The German reference closes the week at 2.1%, half the yield demanded by the market for US debt and with the Spanish at the same maturity at 2.82%. In the last five days all European ten-year securities have cut their yields by more than 10 basis points. All, except the French. The possibility that the motion of censure proposed by Le Pen could overthrow the government causes greater risk aversion among investors in French securities. The French bond closes the week at 2.92% and on par with what is requested for ten-year Greek debt. In fact, during this week that closes November, the Greek bond was seen with a lower return than the French one for the first time in history.

The monthly close follows the same line as the weekly: more purchases in the eurozone than in the US case despite the political crisis in Germany, now also Franceand despite the rise in inflation in the United States of one tenth in both the general and core PCE.

All in all, the US sovereign debt digests the first impact of the Republican victory by closing the penultimate month of 2024 with a lower profitability than seen at the beginning of it and after seeing the US bond in the 4.5% zone. “Investors are more attentive to what is happening in the US, in relation to the new presidency of Donald Trump and its macroeconomic effects on growth, than to the price data, which are assumed to be essentially linked,” commented Pedro del Pozo, director of financial investments of Mutualidad.

Not even the Japanese fixed income increases its return in recent weeks despite the Bank of Japan being one of the few central banks that is in the process of tightening its monetary policy.

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