Portuguese/German 10-yr yield gap at lowest in a week

LONDON, Dec 1 (BestGrowthStock) – The premium investors demand to
buy Portuguese government debt over German benchmarks fell on
Wednesday to its lowest in a week with traders citing central
bank buying of higher-yielding euro zone debt.

The 10-year Portuguese/German bond yield gap narrowed by 22
basis points on the day to 426 bps as euro zone peripheral
sovereign debt won some respite from its recent battering on
speculation the ECB could expand its bond purchase programme.

“We’ve heard that the ECB has been in buying… there’s talk
that they’ve stepped this up a little bit. Also, we’ve had
pretty enormous moves over the last couple of days and some
people are taking a little bit of profit,” a trader said.
“With the ECB looming, I’m sure people are taking off
positions ahead of that,” he added in reference to the ECB
monetary policy meeting on Thursday.

(Reporting by Emelia Sithole-Matarise and William James)

Portuguese/German 10-yr yield gap at lowest in a week