This time last year doubts about Spain were a factor in driving up sovereign bond years for the ‘peripheral’ Eurozone countries. The Irish nine-year government yield as calculated by Bloomberg rose from just over 8% up to near 10% in a couple of days.
Since then, for one reason or another, the path of the yield has been consistently down. By dropping below 4.7% in the past few days the yield is at levels not seen since the summer of 2010 and well below the 7% levels that emerged in the weeks leading up to Ireland’s entry into an EU/IMF rescue programme in November 2010.
Here is the range of Irish yields along the yield curve provided by Bloomberg:Tweet