↑ Scroll to top

German Bonds Advance After S&P Lowers Spain’s Sovereign Rating

Published: October 11, 2012 | 7:18 am
Text size: -A +A

German bonds advanced after Standard & Poor’s yesterday cut Spain’s sovereign-debt rating to one level above junk, citing mounting economic and political risks as the Spanish government considers a second bailout.
German 10-year yields dropped to the lowest in a week. Spain’s credit ranking was lowered two levels to BBB- from BBB+, with a negative outlook to its long-term rating, New York-based S&P said in a statement. Italy is scheduled to sell as much as 3.75 billion euros ($4.8 billion) of notes due in 2015 today, and as much as 2.25 billion euros of securities maturing in 2016, 2018 and 2025.
Germany’s 10-year yield fell five basis points, or 0.05 percentage point, to 1.44 percent at 7:16 a.m. London time, the lowest since Oct. 4. The 1.5 percent bond due September 2022 rose 0.445, or 4.45 euros per 1,000-euro face amount to 100.54. The two-year yield dropped two basis points to 0.03 percent.
Italy last sold three-year notes on Sept. 13 at an average yield of 2.75 percent, when investors bid for 1.49 times the amount of securities allotted.
German bonds returned 3.1 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Spanish securities advanced 1.6 percent, while Italian debt earned 16 percent.

bloomberg

VN:F [1.9.10_1130]
Rating: 0 (from 0 votes)
Share on Facebook Share on Twitter
More posts in category: Local Business News
  • Georgia to begin a broad Tourism Campaign in Ukraine
  • Gambling Sector Attracts Foreign Investment
  • Energy Installment by Bank of Georgia