Spain yields rise as Rajoy aims to contain scandal
FRANKFURT (MarketWatch) — Spanish government bonds were under pressure Monday as Spanish Prime Minister Mariano Rajoy attempted to contain a scandal surrounding allegations that he and other leaders of his party took secret payments. Rajoy over the weekend denied accepting payments and said he would disclose his tax returns and financial holdings, while Spain’s opposition party called on him to resign. The yield on two-year Spanish government debt rose 0.20 percentage point to 2.78%, while the yield on the 10-year bond rose by the same amount to 5.39%, according to Tradeweb. Yields fall as bond prices rise. The yield premium demanded by investors to hold 10-year Spanish bonds over German bunds rose 0.18 percentage point to 3.7 percentage points. Meanwhile, data released Monday showed the number of Spanish unemployed rose 2.7% in January.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
