Tuesday, June 12, 2012

10-year Eurozone Bond Yields: January 1993-April 2012

Below, Corrections displays 10-year Eurozone Bond Yields from January 1993-April 2012 (click to enlarge).  Did Ireland's "austerity" measures work like Iceland's did?  10-year bond yields have fallen dramatically.

1 comment:

  1. Looks like a model of ongoing learning. For a very long time people failed to differentiate between EU countries - hence the convergence - then they started differentiating initially in a gross warn that corrected as people came to understand the differentials (e.g. Ireland treated like Portugal for a while then people realized the two are very different since Ireland has productive capacity and can do an earn-out over time while Portugal has far slimmer productive resources. The interesting thing is that even after a long time to ponder the valuation issues, there remains a relatively small differential between a seemingly insecure country like Italy and the best-in-class Germanic countries (e.g. Germany or Luxemborg.