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11 Sep 2014
UK, Germany, Italy and Spain see a rise in bond yields - Deutsche Bank
FXStreet (Łódź) - Jim Reid from Deutsche Bank observes that yields on the benchmark 10-year bonds in UK, Germany, Italy and Spain grew on Wednesday by +3bp, +5bp, +3bp and +6bp, closing the session at 2.51%, 1.05%, 2.40%, 2.26%, respectively.
Key quotes
"The moves were probably not helped by comments from ECB’s Yves Mersch who said that the ABS purchases are not a prelude to government bond purchases but we suspect some specific factors might be at play for Spain."
"Indeed Spain has risen by 22bps this week and is set for its weakest weekly performance since June 2013 if we don’t get any relief over the next 48 hours."
"Investors seem to be worried that the independence push in Scotland may have some read-through for Catalonia."
"More than 450,000 people are expected to attend a pro-independence demonstration today on the streets of Barcelona, all ahead of an independence referendum on 9 November."
"That said, unlike the ongoing event in Scotland, the Spanish government has deemed the Catalonia vote to be illegal."
Key quotes
"The moves were probably not helped by comments from ECB’s Yves Mersch who said that the ABS purchases are not a prelude to government bond purchases but we suspect some specific factors might be at play for Spain."
"Indeed Spain has risen by 22bps this week and is set for its weakest weekly performance since June 2013 if we don’t get any relief over the next 48 hours."
"Investors seem to be worried that the independence push in Scotland may have some read-through for Catalonia."
"More than 450,000 people are expected to attend a pro-independence demonstration today on the streets of Barcelona, all ahead of an independence referendum on 9 November."
"That said, unlike the ongoing event in Scotland, the Spanish government has deemed the Catalonia vote to be illegal."