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NewsBreak: Spanish Bond Yields Rise as Podemos Joins New Govt

Published 2019-11-12, 09:06 a/m
Updated 2019-11-12, 09:22 a/m
© Reuters.

Investing.com -- Yields on Spanish government bonds rose and the premium over the benchmark German bond widened after acting Prime Minister Pedro Sanchez invited the populist left-wing Unidos Podemos party to form a coalition government. It's the first time that Podemos, which has loudly dissented against the euro zone's fiscal policy in the past, would be represented in government at the national level.

  • The yield on the benchmark Spanish 10-year government bond hit a four-month high of 0.45% after the news
  • The spread over the analogous German Bund hit a one-month high of 67.5 basis points
  • The IBEX 35 benchmark stock index fell to 9,362 points from 9,415 immediately before the news, making it the worst-performing stock market in Europe on Tuesday.
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