Source: Bloomberg
If you can’t pay your debts then you can’t pay your debts…additional credit doesn’t quite cut it. Clearly the market is unconvinced by the bailout package for the Irish and bond yields continue their upward climb. One of the desired outcomes of a bailout package is the hope it will calm markets…it clearly failed there.
Meanwhile in a different part of Europe, Italy, which appears to have the ability to pay its debts thanks to a low-ish budget deficit, has a very scary looking increase in their 10 year bond yields. I could also show similar looking charts for numerous other European countries (Hungary, Belgium,..) but I’m sure you get the picture…so to speak.
These Euro Sovereign debt problems are getting contagious.