Spanish Bond Gains Push 10-Year Yield Below 1% for First Time
- Latest impetus for decline comes from Bank of England measures
- Investors favor peripheral debt that still has positive yield
This article is for subscribers only.
Spanish government bonds advanced, pushing the 10-year yield below 1 percent for the first time, as monetary easing by central banks across the developed world overshadows the nation’s struggles to form a government.
The yield has dropped by more than 0.6 percentage point since Spaniards in June voted in their second inconclusive election in six months, highlighting how local political risk is being offset by global easing. The extra yield, or spread, investors demand for holding the securities instead of similar-maturity German bunds narrowed to the lowest since December.