MNI POLICY: Cracks On MPC But Gradualism Holds, Bailey Nuanced

MNI BRIEF: Fed's Goolsbee Sees Rates 'A Fair Bit Lower'

MNI: BLS: NET REVISIONS TO JULY, AUG PAYROLLS +72K

MNI NBP WATCH: Rates Held As Energy, Wages Push Up Prices

MNI BRIEF: NBP Keeps Key Interest rates unchanged

MNI BRIEF: Turkish Inflation Expectations Ease As CBRT Holds

Economic Data Calendar

CANADA SEP IVEY PURCHASING MANAGERS INDEX 53.1 SA

EZ/UK Bond Supply Calendar: BoE APF Monday; EU Syndication

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

PGB Spreads To Bunds 10bps Off Political Uncertainty-Induced Wides

PORTUGAL

10-year PGB spreads to Bunds have narrowed around 10bps from the wides seen following ex-PM Costa's resignation on Nov 7, currently trading at 62.7bps. Following the bout of political uncertainty, analysts were quick to note that spread widening is likely to be contained as strong fundamentals reassert themselves in the medium-term.

  • On Wednesday, The Bank of Portugal introduced a 4% sectoral systemic risk buffer on "exposures secured by residential real estate", in effect from Oct 1, 2024.
  • The release notes that the "macroprudential tool is preventive and aims to increase the resilience of institutions to the materialisation of potential systemic risk in the residential real estate market in Portugal". This tool strengthens the narrative around strong medium-term fundamentals and should help mitigate the impact of a tail-risk event surrounding the real estate sector in the future.
  • BCP, the largest private bank in Portugal, weighed in on the release today, stating that it was "a preventive measure to address the possible materialization of potential risks", and that their own funds requirement is expected to rise 26bps as a result.
HomepageBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.