Spanish/German bond yield spread widens

LONDON, Dec 7 (BestGrowthStock) – The premium investors demand to
hold Spanish government bonds rather than benchmark German debt
rose on Tuesday, as tension among the euro zone’s peripheral
issuers remained high although traded volumes were low.

“We haven’t really seen much going through, I think maybe
people are waiting for the ECB to step up their purchases and
start buying Spain,” a trader said.
The Spanish/German 10-year bond yield spread (ES10YT=TWEB: )
(DE10YT=TWEB: ) widened to 243 basis points from around 234 bps at
Monday’s settlement.

The equivalent Portuguese yield spread (PT10YT=TWEB: ) earlier
widened to 334 bps, before contracting to 330 bps, 8 bps wider
on the day. Traders cited small central bank buying of
Portuguese debt.

(Reporting by William James)

Spanish/German bond yield spread widens