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10-Yr Portugal Yields Test Negative Territory

EUROZONE

10-Yr PGB yields touch negative territory for the first time (on a mid-price basis), with bid/ask at 0.002%/-0.003%.

  • Spain 10s below 5bps for the first time since Aug 2019.
  • Most of the move has happened since noon, amid comments by ECB's Lane and release of the October Governing Council meeting accounts reinforcing the notion that the central bank will ease policy further at the Dec 10 meeting.

Checking on periphery EGB spreads though, not too much movement as Bunds have rallied:

  • Italian BTP spread up 0.2bps at 118.5bps
  • Spanish bond spread unchanged at 63.7bps
  • Portuguese PGB spread down 0.1bps at 58.8bps
  • Greek bond spread unchanged at 125.5bps

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