Economics
Spain’s Yield Gap Tightest in More Than a Year on ECB Stimulus
- Nation’s 10-year bond yield declines to a record low
- More than half of euro-area sovereign bonds yield below zero
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The yield difference, or spread, between Spain’s two- and 30-year government bonds narrowed to the least since April 2015, another sign that the European Central Bank’s unprecedented asset-purchase program is boosting demand for longer-dated debt.
The ECB’s 1.7 trillion-euro ($1.9 trillion) quantitative-easing plan is shielding Spanish securities from domestic political turmoil after elections in December and June failed to produce a majority government. Spain’s 10-year bond yield dropped to a record.