Spain’s Bonds Fall Most in Two Months as Brexit Concerns Spreadby
Britain’s EU vote next week too close to call, polls suggest
German 10-year bund yields approach their lowest ever
Spanish bonds fell the most in two months as mounting concern that a Brexit is on the way sent investors fleeing riskier assets.
Yields on German 10-year bunds, the euro zone’s benchmark government securities and viewed by investors as a haven, held near Friday’s record low as opinion polls showed the June 23 referendum on whether the U.K. will stay in the European Union is too close to call. Investors were also cautious before this week’s meetings of the Federal Reserve and Bank of Japan, sending global stocks tumbling for a third day and the yen climbing versus its peers.
“There’s been a deterioration in the polls,” said Luca Cazzulani, a senior fixed-income strategist at UniCredit SpA in Milan. Sovereign euro-region peripheral debt is suffering from the “risk-off” sentiment spurred by the U.K. vote, he said.
Spain’s 10-year bond yield climbed seven basis points, or 0.07 percentage point, to 1.50 percent as of 5:20 p.m. London time, the biggest increase since April 7. The 1.95 percent security due in April 2026 dropped 0.69, or 6.90 euros per 1,000-euro ($1,129) face amount, to 104.085.
The 10-year German bund yield was little changed at 0.02 percent, after reaching an all-time low of 0.009 percent on Friday, while similar-maturity Italian debt yields added seven basis points to 1.46 percent.