Saturday, June 2, 2012
Divergence in Bond Yields
The fall in UK and German bond yields almost mirrors the rise in Spanish and Italian bonds. I didn't put Greece on there because it's off the scale.
There is a flight to safety. Does the UK deserve to be seen as safe?
One thing is that it reduces the borrowing costs for UK and Germany very nicely. But, Spain and Italy are in a fix with interest payments taking up a higher % of their tax revenues making it difficult to deal with underlying debt.
One thing is certain, there is no single bond market in the Eurozone.
Factors that influence bond yields.
Posted by Tejvan Pettinger at 9:50 AM