Bond yields on the rise to highest since May 2020
At 08h30 am in Lisbon, 10-year yields climbed to 1.199%, a maximum since May 2020, from 1.184% on Tuesday.
Portuguese bonds were rising at two-, five- and 10-year yields on Wednesday, in line with those of Spain, Greece, Ireland and Italy.
At 08h30 am in Lisbon, 10-year yields climbed to 1.199%, a maximum since May 2020, from 1.184% on Tuesday.
In this term, yields ended in negative terrain in the January 8, 11 and 15, 2020 sessions and reached the current all-time low of -0.059% on December 15, 2020.
In the same vein, five-year yields were rising to 0.399%, a high since May 2020, first recorded on 11 February from 0.381% on Tuesday, after retreating to the current all-time low of -0.506% on 15 December 2020.
Two-year yields also rose to -0.221%, from -0.242% on Tuesday and the all-time low of -0.814% on November 29, 2021.
Interest rates on European sovereign debt have started to rise more significantly, hitting all-time highs since spring 2020, after European Central Bank (ECB) President Christine Lagarde on February 3 acknowledged an increase in the eurozone central bank’s key interest rates as early as this year to combat rising inflation.
Following the meeting of the Governing Council and a rise in eurozone ‘flash’ year-on-year inflation to 5.1% in January, the ECB admitted on February 3 to tighten monetary policy this year with interest rate hikes.
On the same day, the Bank of England raised its key interest rate for the second time in two months from 0.25% to 0.5%.
