Irish Bond Yields Pass 7%



danger here

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White Rose

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This means the game is up, no?

The IMF will be here in the New Year if the yield stays this high

At last, the Germans will be here. I remember my poor old dad telling me he used to go around the hills of Meath with his rifle 'protecting' Ireland from the Germans during the 'Emergency'. They've coming in the side door now, we just have to watch them come in
 

nuj

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Panic over - yields now back to 6.90%...which is about where RTE erroneously reported them to be yesterday evening. (That's still a whopping 435 basis pts over Germany, but shy of the 450 over in late September).
 

nuj

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Actually 6.80% now.
 

Conor

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Squib

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Actually 6.80% now.
The reduction below 7% is probably due to the ECB quietly buying Irish bonds.

ECB Irish Purchases

The European Central Bank bought Irish government bonds today, according to three traders and strategists with knowledge of the transactions. The ECB purchased debt maturing between 2011 and 2020, one trader said, under condition of anonymity because the deals are confidential. A central bank spokesman declined to comment when contacted by telephone in Frankfurt.
 

Chrisco

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Panic over - yields now back to 6.90%...which is about where RTE erroneously reported them to be yesterday evening. (That's still a whopping 435 basis pts over Germany, but shy of the 450 over in late September).
RTE have a habit of mixing up reporting two different sets of 10 year bonds.

Actually 6.80% now.
This is only good news if you believe that the ECB is also going to buy up the 10 billion we are going to need in Q2 of next year, which they probably will.

Which will leave us suffering under a weight of debt and being kept artificially solvent by the ECB in order not to bust some banks in Germany.
 

Rochey

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I thought the more cuts we talk about the more confident the market would be and the further the rate would drop. Isn't that what Brian Lenihan has been saying for some time now? Perhaps the market realises that a 15BN cut will stop all spending in the economy and push us further into the mire or maybe BL needs to come out and say 30BN in cuts, that ought to stabilise the market, right Brian???!!!
 

nuj

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The reduction below 7% is probably due to the ECB quietly buying Irish bonds.

ECB Irish Purchases
It defeats the purpose if you do it quietly.

That said, there have been some very noisy sellers over the last few days. Their activities are as plausible as those of the ECB.
 

Nipper

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I thought the more cuts we talk about the more confident the market would be and the further the rate would drop. Isn't that what Brian Lenihan has been saying for some time now? Perhaps the market realises that a 15BN cut will stop all spending in the economy and push us further into the mire or maybe BL needs to come out and say 30BN in cuts, that ought to stabilise the market, right Brian???!!!

I don't know if you have ever seen the Real Hustle on BBC

Lenihan has been playing the Authority figure who you assume is just doing his job when he takes your credit card and walks out of sight.

The Bond Markets are the audience laughing at the poor sucker being fleeced completely oblivious to the fact.

We are that sucker left wondering where all our money is gone and feeling ashamed of our own stupidity.
 

loaded32

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This means the game is up, no?

The IMF will be here in the New Year if the yield stays this high

At last, the Germans will be here. I remember my poor old dad telling me he used to go around the hills of Meath with his rifle 'protecting' Ireland from the Germans during the 'Emergency'. They've coming in the side door now, we just have to watch them come in
Yup...we are 15-0 down basically but our management keep holding onto the ball when it goes out of play, which is forcing the referee to play a lot of "stoppage" time, even though the game is well and truly over in reality!

THis, yet again goes to show that the markets certainly dont buy FF's spin and all the spin that Lenny and Biffo have been throwing at us "that the markets are confirming their actions as being the right ones" is a big load of dung!
 

rockofcashel

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Did you notice the other little vignette on that page ?

Despite the fact that Britian's (war) economy was on its knees as a result of what went on over the previous 6 years..

"Civil Servants were asking for higher pay"

Plus ca change, plus c'est ca meme chose...
 

Baddaddy

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Time for me to ask a silly question.

We have issued bonds at various prices in the past few years, the interest rate was different than todays rate.

What interest rate do we pay, the one that we issued at, or the market rate as of today.

Sorry if this sounds silly, but I have no idea.
 

Conor

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Time for me to ask a silly question.

We have issued bonds at various prices in the past few years, the interest rate was different than todays rate.

What interest rate do we pay, the one that we issued at, or the market rate as of today.

Sorry if this sounds silly, but I have no idea.
We pay the coupon rate, which is fixed at issuance. The 'interest rates' cited in this and similar threads refers to the yield, which varies with the market.
 


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