Portugal boosts EU as bonds levels reach new levels not seen since eurozone debt crisis
- 7 years ago
00Fast News, Latest News, Breaking News, Today News, Live News. Please Subscribe!
Portugal boosts EU as bonds levels reach new levels not seen since eurozone debt crisis
THE gap between Portuguese and Italian 10-year government bond yields narrowed on Tuesday to levels not seen since the start of the euro zone debt crisis of 2010-2012. In absolute terms, Portugal's 10-year government bond yields dropped 9 basis points to 2.40 percent on Tuesday.Van Vliet said Portugal's recovery from the euro zone debt crisis - when it needed a bailout from European authorities - is a strong story, but cautioned that it is still a weaker credit than Italy because of its external debt position.Portugal's outstanding private debt stood at 280 percent of the country's economic output last year, comprising 178 percent for companies and 103 percent for households."I think this rally is on speculation that Portugal could now be included in many benchmark indices," Van Vliet said. Many large bond indexes provided by investment banks only include investment grade borrowers, and inclusion in these usually guarantees a new influx of investors and lower yields.However, many index providers require an investment grade rating from at least two of the three main credit ratings agencies, and Portugal now only has one. It is rated Ba1 by Moody's and BB+ by Fitch.Portugal was by far the outperformer in bond markets on Tuesday, but other euro zone yields also edged lower on the day ahead of a key U.S. Federal Reserve meeting, which concludes on Wednesday. The central bank of the world's biggest economy is expected to provide details on how it will reduce a massive balance sheet run-up through years of post-crisis money printing.This is seen as significant by European investors as the ECB is also expected to tighten policy, possibly by announcing in October its plans for ending its own money-printing scheme. A 2 billion euro sale of German 30-year bonds on Wednesday should show which way investors see this as going - longer-dated bonds are more sensitive to changes in monetary policy.. 00FastNews. Please Subscribe!
►► Like and share more news!
►► Subscribe to My Channel!
►► See you in the next news! Goodbye!
►► Follow Me: https://www.twitter.com/00FastNews/
https://www.youtube.com/channel/UClk21WmIYqyxp5vWuQDRklA/
Created By 00Fast News
PLAYLISTS:
Breaking News: https://goo.gl/i65GD5
Popular News: https://goo.gl/h9RBFF
00Fast News: https://goo.gl/uxztBd
Latest News: https://goo.gl/96kzfi
All News: https://goo.gl/6SWcku
RANDOM NEWS:
Hurricane Maria LIVE: 5am update from the National Hurricane Center - NOAA latest path: http://youtu.be/5pmJyhW10p0
Australians use Brexit to demand vote to SCRAP Queen to stop ‘clinging to Little Britain': http://youtu.be/WVu51TI63FQ
Hurricane Maria LIVE: 2am update from the National Hurricane Center - NOAA latest path: http://youtu.be/RrABuQ_2Y9A
Hurricane Maria: 2pm update from the National Hurricane Center – NOAA latest path: http://youtu.be/gmPO6tYRkaU
'Get on with Brexit' IDS loses it at Sky News host over Boris Johnson intervention: http://youtu.be/fXPKtJVCdT4
Thank you for watching!
Portugal boosts EU as bonds levels reach new levels not seen since eurozone debt crisis
THE gap between Portuguese and Italian 10-year government bond yields narrowed on Tuesday to levels not seen since the start of the euro zone debt crisis of 2010-2012. In absolute terms, Portugal's 10-year government bond yields dropped 9 basis points to 2.40 percent on Tuesday.Van Vliet said Portugal's recovery from the euro zone debt crisis - when it needed a bailout from European authorities - is a strong story, but cautioned that it is still a weaker credit than Italy because of its external debt position.Portugal's outstanding private debt stood at 280 percent of the country's economic output last year, comprising 178 percent for companies and 103 percent for households."I think this rally is on speculation that Portugal could now be included in many benchmark indices," Van Vliet said. Many large bond indexes provided by investment banks only include investment grade borrowers, and inclusion in these usually guarantees a new influx of investors and lower yields.However, many index providers require an investment grade rating from at least two of the three main credit ratings agencies, and Portugal now only has one. It is rated Ba1 by Moody's and BB+ by Fitch.Portugal was by far the outperformer in bond markets on Tuesday, but other euro zone yields also edged lower on the day ahead of a key U.S. Federal Reserve meeting, which concludes on Wednesday. The central bank of the world's biggest economy is expected to provide details on how it will reduce a massive balance sheet run-up through years of post-crisis money printing.This is seen as significant by European investors as the ECB is also expected to tighten policy, possibly by announcing in October its plans for ending its own money-printing scheme. A 2 billion euro sale of German 30-year bonds on Wednesday should show which way investors see this as going - longer-dated bonds are more sensitive to changes in monetary policy.. 00FastNews. Please Subscribe!
►► Like and share more news!
►► Subscribe to My Channel!
►► See you in the next news! Goodbye!
►► Follow Me: https://www.twitter.com/00FastNews/
https://www.youtube.com/channel/UClk21WmIYqyxp5vWuQDRklA/
Created By 00Fast News
PLAYLISTS:
Breaking News: https://goo.gl/i65GD5
Popular News: https://goo.gl/h9RBFF
00Fast News: https://goo.gl/uxztBd
Latest News: https://goo.gl/96kzfi
All News: https://goo.gl/6SWcku
RANDOM NEWS:
Hurricane Maria LIVE: 5am update from the National Hurricane Center - NOAA latest path: http://youtu.be/5pmJyhW10p0
Australians use Brexit to demand vote to SCRAP Queen to stop ‘clinging to Little Britain': http://youtu.be/WVu51TI63FQ
Hurricane Maria LIVE: 2am update from the National Hurricane Center - NOAA latest path: http://youtu.be/RrABuQ_2Y9A
Hurricane Maria: 2pm update from the National Hurricane Center – NOAA latest path: http://youtu.be/gmPO6tYRkaU
'Get on with Brexit' IDS loses it at Sky News host over Boris Johnson intervention: http://youtu.be/fXPKtJVCdT4
Thank you for watching!