Friday, August 19, 2011

Another day, another drop in yields

The 10-year yield on Irish government bonds dropped below 9.5% today.

Bond Yields 1D 19-08-2011

We can’t be sure what this happened and it could be the result of artificial intervention by the ECB.  I not sure and really can’t see the value of the ECB buying government bonds for a country that is already in a rescue programme.  It could be like this report back in July which stated that it was “real money” coming back into the market.

Here is the full list of all outstanding bonds at the close of business today.  Click to enlarge.

Outstanding Bonds 19-08-11

There is now no Irish government bond yielding more than 10%.  It is clear that concerns about out funding after the current EU/IMF programme expires have eased considerably.  The D-Day bonds maturing on the 14th January 2014 are now yielding 9%.

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