The European Central Bank may push the Spanish two-year note yield to as low as 2 percent through its bond-purchase program, said Steven Major, head of fixed- income research at HSBC Holdings Plc in London.
Peripheral euro-area countries desperately need lower funding costs, and one of the most effective ways of bringing them about is to mutualize eurozone debt though common issuance, said Steven Major, the global head of fixed-income research at HSBC Holdings Plc.
Italian government bonds rose for a second day as the nation sold 6 billion euros ($7.93 billion) of five- and 10-year securities amid easing political tension in the euro-region’s third-biggest economy.
German and French bond yield curves will flatten as a result of the introduction of measures to tackle the euro-area debt crisis, according to Steven Major, global head of fixed-income research at HSBC Holdings Plc.
Greek bonds slumped, leading declines among the securities of Europe’s most indebted nations, as credit downgrades for Greece and Portugal yesterday dented investors’ confidence in their ability to pay their debt.