vrijdag 26 december 2014

Greece Government Bond Yields Inverting

The inversion has begun again in Greece government bonds. Normally, higher maturity bonds have higher interest rates, because they are riskier to hold due to inflation. But sometimes the yield curve inverts (see chart below created by Correlation Economics).

As you know, 2012 was the year where Greece defaulted on debt as low maturity bonds crashed (yellow chart peaks out).

We might be seeing take two of that crash in 2015 as low maturity bonds are now re-inverting against high yield bonds. For more info, go here.

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