Euro peripheral spreads jump, others under pressure

LONDON, Nov 30 (BestGrowthStock) – The premium investors demand to
hold Spanish and Italian sovereign bonds over benchmark Germany
hit its highest since the launch of the euro on Tuesday and even
some of the region’s “core” debt issuers were being pressured.

The spread between Spanish 10-year bond yields (ES10YT=TWEB: )
over those of Germany (DE10YT=TWEB: ) yawned out by 20 basis
points to a euro lifetime high of 297 basis points by 0830 GMT,
while Italian 10-year spreads (IT10YT=TWEB: ) rose for a fourth
day, by 14 basis points to 210 basis points, their widest since
the introduction of the euro.

The difference between Belgian yields (BE10YT=TWEB: ) and
Bunds also hit multi-year highs, while those for France
(FR10YT=TWEB: ) also came under pressure from investors, partially
due to concern about the price-tag of further bailouts.

“Speculators are targeting Italy and Spain and are not going
to stop. We haven’t seen any selling from real money (accounts)
yet, they’re all very nervous but haven’t started selling, when
they do it’s going to be a wash,” one Italian trader said.

Yields on the 10-year Spanish bono (ES10YT=TWEB: ) rose for
eleventh consecutive session, by 17 basis points to 5.65
percent, while Italian 10-year debt yields (IT10YT=TWEB: ) rose
for a sixth day to 4.77 percent.

(Reporting by Amanda Cooper, Kirsten Donovan and Valentina
Za in Milan; editing by Patrick Graham)

Euro peripheral spreads jump, others under pressure