Wednesday, September 28, 2011

Yields fall below 8%

It might only be temporary but the 10-year yield as calculated by Bloomberg has just fallen below 8% for the first time since start of November 2010.  Yields are now lower than they were when the EU/IMF programme for Ireland was announced later that month.

Bond Yields 1D 28-09-2011


  1. Hi Seamus

    Why do you think the decline might only be temporary?

  2. @ Pat,

    It's not much that I think it is temporary but that I see little basis for the decline. There was no real news or developments on the Irish economy since Friday that have caused the yield to fall from 8.7% to 7.8%. It just seems to have happened. Maybe markets are just catching up with earlier developments but I'd guess there is something that caused the decline. As I don't know what that was I cannot say whether the decline is temporary or permanent. Here's hoping for the latter.

  3. Hi Seamus,

    Maybe the decline is due to a relative improvement in Ireland's bonds and not an absolute improvement?

    If the credit crunch goes global again then sensible investors would be cautious about buying exposure to the eastern property bubbles.