The profitability of European debt has skyrocketed this Thursday in the face of the crisis facing the Government in Italy, which could trigger new elections, and on a day in which the European Commission has worsened the economic forecasts for the eurozone, with inflation at record levels.
According to data from Bloomberg consulted by Efe, the return on long-term German debt, considered the safest in Europe, rose shortly after 1:00 p.m. almost eight basis points and stood at 1.217%.
However, the ten-year Italian bond is the one that registers the highest increase in Europe, climbing 24.3 basis points to 3.368%.
For its part, the Spanish bond increased its yield by 13.2 basis points and stood at 2.365%, with the risk premium at 114 basis points.
As for the debt of other so-called “peripheral” European countries, Portuguese titles increased their interest by a little more than 12 basic points, up to 2.358%, while the yield on Greek bonds rose to 2.365% after growing 9, 6 basis points.
IG analyst Diego Morín explains that the situation in Europe is “quite delicate”, an issue that was reflected in the uncontrolled increase in risk premiums last June after the last meeting of the European Central Bank (ECB), which announced the end of debt purchases and increases in interest rates.
Given this escalation, the ECB announced an anti-fragmentation instrument for the euro zone and the flexible reinvestment of the bonds acquired in the pandemic that began on July 1.
“We see that the situation of political instability that Italy is experiencing puts the European fixed income market in check again,” says Morín, who warns that if the Italian government does not reach an agreement and an early election is reached, it would add increased instability in the euro zone.