Irish banks are gearing up to repay more than €25bn of debt in the coming month, in what could prove an important test of investor sentiment towards the broader eurozone financial sector. Bond markets will begin to re-open in Europe this week after the summer hiatus. The Irish redemptions have prompted concern over whether a slew of bonds from the country, to refinance the maturing debt, could weigh on the wider market and affect investor appetite for other bank borrowing.
Bond markets will begin to re-open in Europe this week after the summer hiatus. The Irish redemptions have prompted concern over whether a slew of bonds from the country, to refinance the maturing debt, could weigh on the wider market and affect investor appetite for other bank borrowing.
Usually I just post the bond spreads in Europe, but I think this excellent tool from Bloomberg shows visually what is happening with bond yields in Europe....Starting in 2008 the bond yields started to separate - with Greece and Ireland paying more. Then in May of this year, the situation reached crisis levels. And now the spreads are steadily widening again - as the German bond yields have fallen recently (like the U.S. yields) and the Irish and Greek bond yields have been increasing.
