The reference change of the Spanish bond with a ten-year maturity that is implemented this Monday, in order to use the last bond issued with this term as a new reference, will have an upward impact on the profitability and risk premium of Spain of about 10 basis points, as warned by the Ministry of Economic Affairs and Digital Transformation.
“This change occurs periodically in all countries and is not due to a change in investors’ perception of Spanish credit risk, but rather because the reference that will now be used as a 10-year benchmark has a longer term. and, in an obligatory way, more in accordance with a maturity in 10 years”, they explained.
In the secondary debt market, the return required for the ten-year Spanish bond increased by 3.28% this Monday, to 2.456%, which placed the differential with respect to the German ‘bund’ at about 126 basis points.
Last Friday, the return on the ten-year Spanish bond was around 2.2%, with a risk premium slightly above 120 basis points.
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