Government bonds

Lacks meaning the tir German nearly 0.30%

We remarked in our earlier report that the upward tendency that was observed in throw away them of the bonds shelter did not have the enough force as so that the term to 10 years of the USA exceeded the resistance of 3% and the German 0.55%. Precisely, during the week have attended a significant fall of throw away them, movement that has been seen supported by the novelties from the Fed and, above all, of the ECB. The feeling of caution that it has transmitted Draghi to the market caused that, in barely some hours, the tir of the German bond yielded more than 10 rp and it fell under the level of 0.40%. The pressure of the demand, promoted also by the new imposed tariffs for the USA, would be able to favour new decreases, but limited, because levels lower than the support placed at 0.30% would not be justified.

When it comes to Italy, the statements of the minister of finances, relaxing the worse dreads, and the reasonable result of its last issuances have promoted a fall of throw away them of 54 rp in the term to 10 years and 108 rp in the 2 years, although they still remain almost 100 rp above its minimum ones annual.

Source: Bankia Studies