The bond market experienced some atypical sessions this week due to the Thanksgiving holidays in the United States. However, with the reopening of Wall Street this Friday, purchases of US and European sovereign bonds once again prevailed. He The ten-year sovereign bond falls to 4.21% profitability on the secondary market, six basis points below this week’s starting point. However, European debt saw higher buying pressure.
The German reference closes the week at 2.1%, or half of the yield demanded by the market for American debt and with Spanish at the same maturity at 2.82%. Over the past five days, all European ten-year securities have reduced their yields by more than 10 basis points. Everyone, except the French. The possibility that the motion of censure proposed by Le Pen could overthrow the government is causing greater risk aversion among investors in French stocks. The French bond closes the week at 2.92% and on par with what is demanded for the ten-year Greek debt. Indeed, during this week which ends the month of November, the Greek bond posted a lower yield than the French one for the first time in history.
The monthly close follows the same line as the weekly close: more purchases in the euro zone than in the United States despite the political crisis in Germany, now also Franceand despite US inflation rising by a tenth in both general and core PCE.
In total, American sovereign debt is digesting the first impacts of the Republican victory by closing the penultimate month of 2024 with lower profitability than that observed at the start and after seeing the American bond in the 4.5% zone. “Investors are more attentive to what is happening in the United States, in relation to the new presidency of Donald Trump and its macroeconomic effects on growth, than to price data, supposedly essentially linked,” commented Pedro del Pozo, director of financial investments at Mutualidad.
Not even the Japanese Fixed Income has been increasing its yield in recent weeks, although the Bank of Japan is one of the few central banks that is tightening monetary policy.
