Yet another record for Germany in terms of government bonds. In the secondary market the two-year “Schatz” have recorded negative interest rates, up to a new all-time low. Yields have sunk to the bottom line -0,026%. This means that investors, in order to buy them, are willing to pay a higher amount than - theoretically - they will be repaid when the bonds reach maturity. On the other hand, Frankfurt even manages to make money from debt refinancing operations.
The new German record fits into an apparently contradictory European picture. In the morning the Italian auction of annual Bots ended in a more than positive way: the Treasury placed all the 7,5 billion euro offered, with average interest rates significantly down on the last issue in mid-June: yields dropped from 3,972% to 2,697%.
However, the news left the markets indifferent, which evidently had foreseen the positive outcome of the placement. The spread between ten-year BTPs and the corresponding German Bunds, it even widened again, reaching a maximum for the day at 466 basis points, after closing yesterday's session at 454. The new level of the differential corresponds to interest rates on our ten-year bonds equal to 5,866%.
In the same minutes he also went up again Madrid spread, which he brought again over the threshold of 540 basis points, from the 530 scored at the last closure. On the other hand, the situation on the French side is calmer, with the Oat-Bund spread down slightly from yesterday, from 105 to 100 basis points.
