Obligationsrenterne verden over fortsætter med at falde. Det gælder også i de økonomisk hårdt ramte sydeuropæiske lande.
European periphery bond markets continued to perform yesterday as record-low US yields, ECB buying, EU fiscal support schemes and hunt for yield pushed investors towards ‘high-yielding’ Italy and Spain.
Yield on 10Y BTP dropped below 1% and 30Y Spain to 1.05%. US 10Y treasury yields dropped to 0.505%, the lowest level ever as market expectations of Fed keeping rates low ‘for ever’ and rapidly falling rates volatility added to treasury demand.
Bloomberg also reported that the recent weakening of the US dollar according to market sources had triggered currency unhedged treasury buying from Asian investors.
In the US, the equity markets ended the day slightly higher as markets were focusing on the possibility of a new round of fiscal stimuli and more easing through stronger Fed forward guidance or yield curve control.
There is still high uncertainty whether a deal on a new US stimulus package can be reached in the US. However, both Treasury secretary Mnuchin and Nancy Pelosi from the Democratic Party said that they expected to reach an agreement this week.
