Spain's Bond Spread Widens in Week One of ECB Expanded Buying

Spain’s government bonds headed for a weekly drop despite this being the first full week of the European Central Bank’s expanded stimulus program.

The extra yield, or spread, that investors get for holding Spanish 10-year bonds instead of similar-maturity German debt is set to widen this week by the most since July 3. The ECB increased the size of its monthly bond purchases to 80 billion euros ($91 billion) from 60 billion euros starting April 1.

Spain’s 10-year bond yield fell three basis points, or 0.03 percentage point, Friday to 1.58 percent as of 8:56 a.m. London time, paring this week’s increase to 14 basis points. The 1.95 percent security due in April 2026 rose 0.25, or 2.50 euros per 1,000-euro face amount, to 103.44.

Benchmark German 10-year bund yields were little changed Friday at 0.10 percent, leaving the spread with the Spanish securities 17 basis points wider on the week at 147 basis points.

Before it's here, it's on the Bloomberg Terminal.