Thursday, January 30, 2014

The post-Moody’s blues

Not a lot of talk of government bond yields this week but a quick look at the indicative five-year yield on Irish government bonds calculated here shows that the drop in yields that happen on January 20th (after the Moody’s upgrade) has been almost fully reversed for the bond maturing in October 2018.

Bond Yields 5yr 30-01-14

The yield was around 1.80 per cent on Friday 17th of January and it dropped to close to 1.60 per cent after the Moody’s upgrade.  As can be seen it has been edging back up since then and is now at 1.77 per cent.  Much better than 14 per cent of course.

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