Week of timid sovereign debt purchases in both Europe and the United States. The increases in bond prices pulled yields down slightly, leaving the T-Notethe 10-year reference in the US, at around 4.41%, and the Spanish bond slightly below 3% during the session. The Spanish reference had not lost this level since the end of October.
In recent weeks, US debt has been among the most volatile, following Donald Trump’s victory in the presidential elections on the 5th. The sales carried out by investors led the performance of the T-Note in the middle of this month to the highs of July, at 4.45% (in fixed income, sales translate into increases in yields). Currently, the performance extra The offer of the 10-year US bond against its Spanish counterpart (or risk premium) is at its highest level in more than three years.
According to Steve Ellis, global CIO of Fidelity’s fixed income area, “the market has interpreted Trump’s policies as more expansionary and more likely to generate a more negative environment for fixed income markets. I am inclined to think that “The deficit issue will be postponed again, which could cause a shock to the debt markets.” Ellis is not clear “whether this fact will finally make the market question the credit quality of the US Treasury”but remember that this year “we have already seen markets react sharply to supply-related concerns.”
Regarding the bundle, has experienced purchases in the last week, with the consequent drop in profitability. The 10-year German bond currently offers 2.27% (it started the week at 2.35%). The German debt, whose profitability reached July peaks at the beginning of the month (at 2.44%), has lost all its progress.
In general, the tone of November, with one week left until the end of the month, is marked by purchases of public debt in Europe. All references in the Old Continent have experienced decreases in profitability, unlike the US.
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