Free Trial

PGB/Bund Spread Widens Following PM Resignation

PORTUGAL

The PGB/Bund spread widens by almost 4bps following confirmation that PM Costa has resigned. The generic spread now sits 2.1bps wider at 73bps as the 10-year PGB yield rises on the announcement, currently trading at 3.402%.

  • PGBs still sit firmer on the day, but underperform peripheral peers.
  • As flagged by our Political Risk team above, it remains unclear what the next steps will be in terms of Portugal's political landscape. The likely options are that the governing PS elects a new leader to replace Costa, or the president dissolves parliament and calls snap elections.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.