Interest on Portugal’s debt slides with recovery fund

A day of decompression on the debt market, with interest rates in southern European countries falling in the wake of the European Commission’s presentation of the recovery fund: it will be worth 750 billion, as Italian commissioner Paolo Gentiloni revealed. The interest rate of Portugal’s debt is already below that of Spain.

The yield associated with Portugal’s 10-year bonds, the benchmark term, yields almost five basis points to 0.651%, the lowest since the end of March, according to Reuters.

The Spanish debt rate at the same maturity also continues to fall by 4.4 basis points, but now trades at 0.653%, above the Portuguese rate. In theory, this means that investors place Spain as a more risky country than Portugal when it comes to investing in public debt.

This morning, Paolo Gentiloni said on Twitter that the European Commission will present a recovery fund for the European economy post-Covid worth 750 million euros. “It is a European turning point to face an unprecedented crisis,” wrote the Italian politician on the social network.