Oct
22
Spanish government bonds rose after
Prime Minister Mariano Rajoy extended his majority in his home
region of Galicia as voters offered some respite to his 10-
month-old government.
German 10-year bunds were little changed after yields
climbed the most in a month last week. France is due to auction
7 billions euros ($9.14 billion) of bills today.
Spain’s 10-year yield fell two basis points, or 0.02
percentage point, to 5.36 percent at 8:03 a.m. London time after
dropping to 5.26 percent on Oct. 19, the lowest level since
April 2. The 5.85 percent bond due in January 2022 rose 0.11, or
1.10 euros per 1,000-euro face amount, to 103.50.
Rajoy’s People’s Party won 41 of the 75 seats in Galicia,
allowing it to extend its majority in the northwestern region as
the Socialists lost almost half of their votes and a new leftist
group took nine seats. In the Basque Country, where support for
the People’s Party is traditionally weak, the Basque Nationalist
Party won 27 seats, allowing it to lead a government through
alliances with other parties.
Greek 10-year bonds gained for a fourth day after an e-
mailed statement from the New Democracy party said Prime
Minister Antonis Samaras expelled lawmaker Nikos Stavrogiannis
from his New Democracy party.
Stavrogiannis told Greek weekly newspaper Real News he
would vote against austerity measures the government is
preparing.
The yield on Greek bonds due in February 2023 fell one
basis point to 16.44 percent.
German Bunds
German 10-year bunds yielded 1.60 percent after rising 15
basis points last week, the most since the period ending Sept.
14. The yield climbed to 1.66 percent on Oct. 18, the highest
since Sept. 19.
Germany’s bonds returned 2.5 percent this year through Oct.
19, according to indexes compiled by Bloomberg and the European
Federation of Financial Analysts Societies. Spanish securities
rose 3.9 percent, and Italian debt gained 18 percent.
To contact the reporters on this story:
David Goodman in London at
dgoodman28@bloomberg.net;
Lucy Meakin in London at
lmeakin1@bloomberg.net
To contact the editor responsible for this story:
Paul Dobson at
pdobson2@bloomberg.net
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