• About Us
  • Privacy Policy
  • DMCA
  • Editorial Policy
  • Contact Form
Monday, May 12, 2025
  • Login
No Result
View All Result
NEWSLETTER
BOB fm
  • Home
  • Top News
  • World
  • Economy
  • science
  • Technology
  • sport
  • entertainment
  • Contact Form
  • Home
  • Top News
  • World
  • Economy
  • science
  • Technology
  • sport
  • entertainment
  • Contact Form
No Result
View All Result
BOB fm
No Result
View All Result
Home Economy

The eurozone has been affected by the “epidemic” of reverse interest rates, but Portugal is outside the trend

Ursula Curtis by Ursula Curtis
December 9, 2022
in Economy
0
The eurozone has been affected by the “epidemic” of reverse interest rates, but Portugal is outside the trend
0
SHARES
24
VIEWS
Share on FacebookShare on Twitter

An epidemic of an inverted yield curve has reached the eurozone, according to this week’s data for average interest rates on public debt for the entire European single currency area published by the European Central Bank on Friday.

An inverted curve means that the short and medium term rates demanded by investors are higher than those for longer maturity periods. This reversal is considered an early sign of recession in the coming months.

Public debt rates for the eurozone as a whole for 12 months averaged 2.2%, a level higher than interest rates for 2-, 3- and 4-year maturities. Because it is very limited reflection, experts speak of a partially inverted curve. European specialists and leaders of the European Central Bank expect a “mild” and short-term recession in the eurozone.

Germany with a fully inverted curve

However, the inversion of the curve is complete for Germany (the largest economy in the euro) and Malta. In the case of German bunds, the 12-month interest rate, at 2.17%, is the highest on the entire bond curve.

At 10 years the interest is 1.84% and at 30 years it is 1.58%. Rates over 2% are only recorded for 12-month bonds (the highest, as mentioned earlier) and 2-year bonds (2.07%).

This complete inversion of the curve is seen as a prediction of a recession in the Euro’s largest economy. According to the latest forecasts of the European Commission, the German economy is expected to decline by 0.6% next year.

Portugal is off trend

The fully inverted yield curve trend covers 26 countries, 14 of which are developed, according to the latest data from the Global Government Bonds Portal, which monitors the state of public debt worldwide. The advanced group includes Germany (discussed above), Canada, South Korea, Denmark, the United States, Iceland, Israel, Malta, Norway, New Zealand, the United Kingdom, Singapore, Sweden and Switzerland.

The partially or slightly inverted curves include 17 countries, nine of which are from the eurozone (Austria, Belgium, Cyprus, Slovakia, Spain, France, Ireland, Italy, and the Netherlands).

In the case of the yield curve on Portuguese treasuries, there has been an inversion between the 2- and 4-year maturities: the 2-year rate is 2.175%, higher than that of the next two maturities (2.109% and 2.136% respectively). But the WGB portal does not include Portugal in the set of minimally inverted curves.

Ursula Curtis

“Writer. Analyst. Avid travel maven. Devoted twitter guru. Unapologetic pop culture expert. General zombie enthusiast.”

Ursula Curtis

Ursula Curtis

"Writer. Analyst. Avid travel maven. Devoted twitter guru. Unapologetic pop culture expert. General zombie enthusiast."

Next Post
Sunak and Lula talk about strengthening cooperation between the United Kingdom and Brazil

Sunak and Lula talk about strengthening cooperation between the United Kingdom and Brazil

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Navigate

  • Home
  • Top News
  • World
  • Economy
  • science
  • Technology
  • sport
  • entertainment
  • Contact Form

Pages

  • About Us
  • Privacy Policy
  • DMCA
  • Editorial Policy
  • Contact Form
  • About Us
  • Privacy Policy
  • DMCA
  • Editorial Policy
  • Contact Form

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • About Us
  • Contact Form
  • DMCA
  • Editorial Policy
  • Privacy Policy

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.