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Tag Archives: Spanish bonds

Semaña grande for Sánchez

The interim Spanish prime minister, the socialist Pedro Sánchez, will aim to form a government this week. Outside the political noise, the Spanish economy continues to do well. April’s elections in Spain resulted in a fragmented parliament, making the formation of a government complicated. Acting prime minister Pedro Sánchez of the Socialist Party (PSOE) goes to parliament this week to seek backing for his bid to form a...

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Semaña grande for Sánchez

The interim Spanish prime minister, the socialist Pedro Sánchez, will aim to form a government this week. Outside the political noise, the Spanish economy continues to do well.April’s elections in Spain resulted in a fragmented parliament, making the formation of a government complicated. Acting prime minister Pedro Sánchez of the Socialist Party (PSOE) goes to parliament this week to seek backing for his bid to form a government, with a parliamentary vote due to take place on July 23. To be...

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Peripheral bonds after the Spanish election

We remain underweight peripheral euro area bonds in general due to continued political uncertainty, which will feed volatility. On April 28, Spain held its third general election in less than four years. As was expected, the centre-left Socialists (PSOE) emerged the largest party, but it does not have an absolute majority, so negotiations with other parties will be needed. But the political fog in Spain is unlikely to...

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Peripheral bonds after the Spanish election

We remain underweight peripheral euro area bonds in general due to continued political uncertainty, which will feed volatility.On April 28, Spain held its third general election in less than four years. As was expected, the centre-left Socialists (PSOE) emerged the largest party, but it does not have an absolute majority, so negotiations with other parties will be needed. But the political fog in Spain is unlikely to lift much before the regional and European elections on May 26.The misty...

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Robust outlook supports low Spanish sovereign bond spreads

Strong metrics mean we expect the 10-year Spanish government bond spread over Bunds to widen less than we thought before.Strong, relatively broad-based economic recovery and the limited economic impact of the Catalan crisis pushed Fitch to upgrade Spanish sovereign debt by one notch to A-/Stable in January. The upgrade triggered a significant rally, with the spread on Spanish 10-year bonds versus Bunds dropping below 70 basis points (bp) on February 1 for the first time since 2009.The...

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Italian and Spanish bonds relatively immune to politics

While political risks have fallen marginally in Italy, political tensions have intensified in Spain. But, as things stand, we do not think that political risk in either country will lead to a systemic crisis.Italy and Spain have been at the centre of market attention again in recent weeks. Italian politics have livened up as we move towards the general election next spring 2018, while the threat of Catalan independence has placed the spotlight on Spain. But we expect only a slight widening...

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