Moderate sales of bonds in the secondary market and, therefore, increases in debt yields. This is what has predominated in the sovereign fixed income market at the start of 2025, that is, in the sessions this Thursday and Friday (since on Wednesday the market remained closed for the celebration of the New Year). The yield on the Spanish 10-year bond ended the week at 3.10%, its highest level since mid-November from last year. This yield has risen almost vertically since mid-December, when it had fallen to 2.75% (sovereign debt yields fell en masse after Donald Trump’s victory in the November 5 elections).
The sales of recent weeks have not only been protagonists with regard to the debt of the Kingdom of Spain, but have also been common to sovereigns both in Europe and on the other side of the Atlantic. In fact, France bond yield After 10 years it has reached 3.29%, comfortably above the Spanish and at maximums not seen since last July.
Higher is the yield on the Italian bond at the beginning of the year, which is around 3.60%, while the British bond reaches 4.60%. The Portuguese is at 2.90%. For its part, he bundle German moves around 2.42%, a maximum that returns it to the beginning of November.
In the United States, the T-Note moves around 4.57%. Profitability has risen, as has happened in Europe, abruptly since the beginning of December, when it was around 4.15%. Even so, it is still below what was its maximum in 2024, the 4.70% that it reached in April of last year. “We believe that the Fed will have difficulty lowering interest rates substantially from now on. This means that yields will remain high for some time,” explains Alex Everett, chief investment officer at abrdn. “However, bonds with longer maturities may yield further. Curves will steepen as markets factor higher levels of term premium (the additional return investors demand for holding longer-term bonds) into yields.” “he adds.
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