Week of timid purchases of sovereign debt in Europe and the United States. Increases in bond prices have pushed yields down slightly, leaving the T-notethe 10-year benchmark in the United States, at around 4.41%, and the Spanish bond slightly below 3% during the session. The Spanish reference had not lost this level since the end of October.
In recent weeks, The American debt is among the most volatile since the victory of Donald Trump. in the presidential elections on the 5th. Sales by investors dominated the performance of the T-note in the middle of this month to the July highs, at 4.45% (in bonds, sales translate into higher yields). Currently, performance additional The supply of the 10-year American bond against its Spanish counterpart (or risk premium) is at its highest level in more than three years.
According to Steve Ellis, Fidelity’s global fixed income CIO, “the market has interpreted Trump’s policies as more expansionary and more likely to generate a more negative environment for bond markets. I tend to think that “the deficit issue will be postponed”. again, which could cause a shock to the debt markets. » Ellis is unclear “whether this fact will ultimately cause the market to question the credit quality of the US Treasury”but remember that this year “we have already seen markets react strongly to supply-side concerns.”
Regarding the pack, experienced buying last week, with the resulting drop in profitability. The German 10-year bond is currently offering 2.27% (it started the week at 2.35%). German debt, whose profitability reached July highs at the start of the month (at 2.44%), lost all its progress.
Generally speaking, the tone of the month of November, one week before the end of the month, is marked by purchases of public debt in Europe, after a fateful month of October for this asset. All references in the Old Continent have experienced declines in profitability, unlike the United States.
