Searcher

Published on Monday, June 3, 2019 | Updated on Monday, June 3, 2019

Portugal: orthodoxy, certainty and reward

A couple of years ago, the risk premium paid by the Portuguese 10-year government bond against its German counterpart was hovering between 350 and 400 basis points (bp). Meanwhile, the Spanish 10-year bond was paying between 100 and 125 bp.

Key points

  • Key points:
  • While Spain continues to pay an extra yield similar to that of a few years ago, the Portuguese risk premium is now barely 10 or 15 bp above the Spanish.
  • The market appears to be rewarding the Portuguese economy for an orthodox fiscal policy and for the reduction in uncertainty about economic policy.

Geographies

Topics

Has this information been useful?

New comment

Be the first one to add a comment

Load more

You may also be interested in