Friday, April 23, 2010

The Case for Contagion

The first chart on the left shows, in basis points, the difference between temporary maximum and minimum yields of the Greek 10-year bond - compared to those on December 4, 2009, the last Friday before the current panic began.


The second chart shows the same for Italy, Spain, Portugal and Germany. Specifically, Portuguese bond yields continue to make new highs, Spanish are higher but not as much as they were in January and Germany may end up being able to fund a Greek bailout with interest charges saved as the yield continues to decrease.

All figures are based on Friday closes and are not actual minima or maxima.

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