The risk premium rises by lower purchases of the ECB and the refuge effect

Best Growth Stock – The risk premium rose today after Spanish three consecutive days to put down on 283.8 points due to lower purchases of bonds by the European Central Bank (ECB) and the commitment of investors for debt securities more reliable the panic of the bags.

In fact, the performance of German public debt to 10 years, considered the safest in Europe, fell from 2.365 percent yesterday to 2.192 percent, its lowest level since August 2010.

The profitability of Spanish bonds, which compares with the Germans for the risk premium also fell, although to a lesser extent, rising from 5.081 percent yesterday to 5.03 percent at the end of the day in the secondary market.

Thus, country risk rose compared to 271.7 basis points yesterday, though still far short of the 398.46 points that marked last Thursday and were the highest since the euro’s creation.

Italy’s sovereign debt also fell below that of Germany, to 5.084 percent, so their risk premium moved up to 289.2 points.

In any case, the behavior of Italian titles at 10 years was better than the Spanish, after the Italian Treasury placed today got 6,500 million euros in one-year bonds with a return significantly lower than in the past Auction of that denomination.

According to the operators consulted by Efe, securities trading today on Spanish declined to sales recorded on Monday and Tuesday, to total 778 million euros, which would show the least activity of the European Central Bank (ECB) market debt.

That acquisition of Spanish titles lower down substantially since Tuesday, when the Spanish platform recorded a trading Iberclear 1999.39 million compared to 4379.15 million euros on Monday, according to the Bank of Spain.

However, experts insisted that the debt market has been jailed today also purchases by investors fleeing the stock market crash.

“Today has been a clear finding shelter assets in fixed income,” said an analyst at CM Capital Markets Jorge Lage, in line with market strategist at IG Markets Pell√≥n Soledad, who explained that denied rumors of a possible downgrade the qualification of France shook all the world places.

Pellon noted, however, that the debt market is not calm and to continue to require the intervention of the ECB to avoid the risk premiums soar again by mistrust of the peripheral countries.

States of the European Union rescued showed opposing trends, because while Portugal got down the profitability of its 10-year bonds (less than Germany, which pushed up the risk premium), Ireland and Greece recorded slight increases in performance of their titles.