Tag Archives: Portugal

REFILE-UPDATE 2-Austria follows Italy as the government continues ultra-long issuance | Instant News


(Clears repeating data about Austria)

* Austria will sell 50-year bonds, following Italy

* Spain will sell 15 year bonds

* Bond yields rise as investors digest the issuance

April 13 (Reuters) – Austria on Tuesday moved to lock in its current low borrowing costs with 50-year bonds, following a half-century issue from Italy, while Spain launched a 15-year newspaper.

Both deals are made through a syndicate of banks, with Austria to raise 1.75 billion euros and Spain six billion euros, according to a key manager’s memo seen by Reuters.

Last week’s Austrian and Italian bonds marked a resumption of a very long term, 50-year issuance.

After a strong start to the year with 50-year selling from France, Spain and Belgium, the bond selloff was driven by higher growth expectations and inflation weighed on bond buyers with losses and such issuance eased.

“European investors still rely on a lower narrative for the long term and therefore there is no fear on their part to buy longer term bonds as there is no fear of regime change in growth and inflation dynamics,” said Antoine Bouvet, senior pricing strategist. on ING.

“It is true that tariffs have moved higher, but in the grand scheme of things, they are still quite low.”

The European Central Bank has calmed the market by increasing its rate of asset purchases.

Ultra-long-dated bonds are considered to be one of the most risky government debt problems, because they are more sensitive to changes in the underlying interest rates. In addition, the ECB, which is pushing down euro area borrowing costs, has not bought bonds of more than 30 years.

Austria saw demand 13 billion euros and Spain 42 billion euros as both books shrank after the government cut offered yields.

That’s well below the 65 billion euros in offers Madrid received for a 50-year contract in February and 18 billion euros for Austria’s 100-year bonds last year.

Bouvet said the lower demand may descend to a large increase in yields this year meaning investors such as pension funds will no longer need to buy longer-term bonds. Some governments are also trying to get rid of bidders they believe will deliver an increased order

Euro area bond yields barely moved as data showed US inflation rose 2.6% year-on-year in March, slightly above forecasts.

But massive supplies weighed on the market, with German 10-year yields almost hitting a two-week high of -0.271% and Italian 10-year yields at their highest in more than a month at 0.78%.

Investors also digested the supply of bonds from the Netherlands, Italy, the UK and the sale of $ 24 billion worth of US 30-year bonds, all of which were sold at auction.

Reporting by Yoruk Bahceli; Edited by Catherine Evans, Alexandra Hudson and Giles Elgood

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Austria, Spain followed Italy by selling long-term debt | Instant News


* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr

April 13 (Reuters) – A 50-year bond sale from Austria on Tuesday will test further investor interest in ultra-long-dated debt after high demand for a similar sale from Italy last week, while Spain will sell a 15-year newspaper.

The prospect of a substantial new supply helped push bond yields in the euro area slightly higher in early trading Tuesday. Bond yields move inversely with prices.

The two countries sold their debts, also including four-year bonds from Austria, through a syndication, in which issuers use banks to sell their debt directly to investors, according to a lead manager memo seen by Reuters.

Investors must also digest the reopening of 15-year bonds from Italy to 2 billion euros, 1 billion pounds of 50-year bonds from the UK, and $ 24 billion in 30-year US bonds, all of which will be sold through more traditional means. auction format.

German 10-year yields, the benchmark for the bloc, were up by about a basis point to -0.29% at 0738 GMT. ING analysts said they expect Tuesday’s supply to cause long-dated government bonds to underperform.

The deal follows last week’s publication of a 50-year syndicate from Italy, which received nearly 13 times the demand for the five billion euros it raised.

After a strong start to the year, sales of ultra-long debt have slowed since February, when yields rose sharply as investors bet that a large US fiscal stimulus package will reignite growth and inflation that hurt safe-haven bonds.

France, Belgium and Spain all sold their 50-year bonds earlier in the year as they tried to lock in lower borrowing costs. But all of those bonds fell sharply during the volatile February patch.

The European Central Bank has since calmed European bond markets by increasing the rate of buying its assets.

The price of a 50 year bond, among the longest term issued by the government, is more sensitive to changes in the benchmark interest rate. The fact that the ECB, whose asset purchases have pushed down the euro area’s borrowing costs, has not purchased bonds in more than 30 years adds additional sensitivity.

On the data front, investors will be watching the German ZEW investor morale survey and US inflation data. A Reuters poll forecasts US inflation to jump 2.5% year-on-year in March, from 1.7% in February.

Reporting by Yoruk Bahceli; Edited by Catherine Evans

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UPDATES 2-Euro bonds yield flat, new Italian issuance in focus | Instant News


* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr (Updating prices, adding backgrounds)

LONDON, April 7 (Reuters) – Eurozone bond yields were flat on Wednesday, with southern European debt steady after a sell-off in the previous session as markets braced for fresh supplies from Italy and Portugal.

Italy began the process of selling its new 50-year and 7-year bonds through a syndicate of banks on Wednesday, after marking new issues the previous day.

Portugal raised, through a bank syndicate, 4 billion euros of 10-year bonds on the back of a demand of 30 billion euros, according to a memo of the chief manager.

The tone on eurozone debt markets was largely weak, with most 10-year bond yields down 1-2 basis points (bps) on the day following falling overnight US Treasury yields.

“Overall, the higher pull from US interest rates is still alive and well and the rebound in eurozone bond markets is largely technical and temporary,” said ING senior rates strategist Antoine Bouvet.

The yield on the German 10-year Bund was flat at -0.32%, down from recent highs around -0.26%.

The IHS Markit Eurozone Purchasing Managers’ Index (PMI) rose to 49.6 in March from February 45.7, higher than the flash forecast of 48.8 and just below the 50 mark that separates growth from contraction.

The eurozone economy is on track for a strong recovery in the second half of this year that could allow the European Central Bank to start phasing out its emergency bond purchases in the third quarter, said Dutch central bank head Klaas Knot.

The ECB bought net assets of 6.178 billion euros ($ 5.20 billion) last week as part of a quantitative easing program, below the 23.995 billion euros it bought a week earlier.

The yield on Italy’s 10-year bond was unchanged at 0.70%, after rising sharply on Tuesday as investors braced for new supplies. The difference in the yield on the German Bund is just over 100 bps.

Analysts said bond spreads are back in focus, especially after last month’s decision by Germany’s constitutional court to stop ratification of the EU Recovery Fund prompted investors to reassess some of the risks to peripheral bonds.

“Tesoro’s (Italian Treasury’s) announcement of a new 50-year BTP syndication caught the market off guard, with 10-year and 30-year spreads versus the Bund widened by 7 bps to its highest level in nearly a month,” said Michael Leister, chief interest rate strategist. at Commerzbank, referring to Tuesday’s market moves.

“While thinner Easter liquidity may also play a role, this move adds weight to our short tactics in Italy versus semi-core (bonds) and Spain as the risk of indigestion is exacerbated by doubts about the NGEU (Next Generation EU), the ECB’s settles and makes a difference. the less generous. “(Reporting by Dhara Ranasinghe; Additional reporting by Yoruk Bahceli; Editing by Pravin Char)

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Do you know which countries are the healthiest to live in? Check the full list here | Instant News


Today is World Health Day and considering how the way people perceive their own health and those around them have changed in recent years, especially after the Coronavirus pandemic has hit humanity, this day comes as an opportunity to spread as much awareness as possible about better health, healthier. lifestyle and draw attention to health-related problems around the world. It also comes as an opportunity for those who wish to move on to a healthier life. Well, why not start today!

In accordance with the World Health Organization (WHO), the theme of this year’s World Health Day is ‘Building a fairer and healthier world’.

Stating that the COVID-19 pandemic has hit all countries hard, the WHO said that our world is an unequal one where “some groups are struggling to make ends meet with little daily income … little or no access to a safe environment, clean water and air, food security and health services. “

WHO urges leaders around the world to “monitor health inequities, and to ensure that all people can access quality health services when and where they need them.”

And while people around the world are still struggling to understand how much life has changed due to the COVID-19 pandemic, recently, UK-based price comparison website Money.co.uk has put out a world list. healthiest country 2021. Publications release this list every year and this time it has also been published on World Health Day.

Criteria

The publication states that their mortgage specialist ranks the healthiest countries and cities in the world according to “good food, good friends, and good transport links.” Apart from that, conditions such as air quality, pollution level, cost of living, life expectancy, etc. are also taken into account.

Below is a list of the 5 healthiest countries in the world.

1. Spain: According to the report, Spain is the healthiest country in the world. It mentions reasons such as their Mediterranean lifestyle, walking as a mode of transport, which helps reduce pollution-induced deaths, moderate cost of living, among other things why the country tops their list.

2. Portugal: As per reports, Portugal has the second place in the list of healthiest countries in the world. Their highly rated health care system is the reason why the country has achieved good rankings on several health indexes over the years, including this one.

3. Switzerland: Switzerland is home to one of the happiest populations. In fact, according to the World Economic Forum’s 2013 Human Resources Report, Switzerland invests more in the health, education and talents of its people than any other country in the world.

4. Japan: Home to the oldest population in the world, Japan clearly has one of the highest life expectancies in the world! Other factors that put Japan in the top five are: their smaller portion sizes and protein-dense foods, their very fast transportation, walking as the preferred mode of transportation and the high cost of living which matches the price among others.

5. Iceland: A good health care system, a healthy diet, and clean water, among other things, such as low smoking rates, make Iceland one of the healthiest countries in the world to live in.

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Italy and Portugal Launch a Wave of Bond Sales to Lock Interest Rates | Instant News


Two of the most indebted European countries are getting ready to testing investors’ appetite for their bonds as the economic recovery starts to lift yields from historically low levels.

Italy will offer its first 50 new years bond in nearly five years through the bank on Wednesday. It is also set to sell debt maturing in 2028, while Portugal is expected to come to the market with 10 years security, according to people with knowledge of the problem.

The sale came as investor interest in government debt showed signs of waning, with investors assessing an end to the pandemic as vaccine launches gather power across continents. On Tuesday, the regional benchmark stock index rose to a record, a sign that traders are exiting government bonds and becoming a riskier asset.

But demand for peripheral euro area debt may be strong, given that the European Central Bank has committed to accelerating bond purchases this month to prevent unwarranted tightening in financial conditions.

“The ECB increased quantitative easing in Q2 and what are the issuers doing? Start printing like crazy, ”said Jens Peter Sorensen, chief analyst at Danske Bank A / S.

Read more: Draghi’s Euphoria Can Last a Century in the Italian Bond Market

Speculation is growing that Italy could even issue 100-year debt to help finance its recovery from the coronavirus. The longest dated bonds are 50-year securities issued in 2016, which currently earn around 2%. That’s the highest level since September, but still low by historical standards.

For Portugal, the bond sale is also symbolic, coming nearly a decade after first requesting a bailout package from the International Monetary Fund. The 10-year yield is now just 0.24%, compared to more than 18% at the height of the sovereign debt crisis.

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