As Ireland exits the program at the end of this year the yield (or interest rate) on our sovereign bonds will be crucial. Right now we are well within sustainable territory at around 3.9% 10 year. It had dropped to just 3.4% a couple of weeks a go before rising above 4% (mainly due to concerns central banks are not doing enough to stimulate demand in the world - specifically the Japanese Central Bank). But it's downward again and demand is increasing all the time.
So it's important to keep track. This can be done here
http://www.investing.com/rates-bonds/world-government-bonds
Whatever happens we need a rate really below 5% and there is absolutely no danger of Ireland failing to exit the program at the end of the year. But the lower the yield the better off we are as well.
Quite telling Italy is at 1% yield for a 1 year bond. Ireland is at .33%. Italy 2 year is at 2.2%. Irish 2 year 0.93%. Doing very well.
So let's keep this thread for these updates bad or good. Thanks!:cheers:
*As investors buy bonds the price of bonds rises and thus the interest rate falls, when they sell the price of bonds fall and the interest rate rises*
So it's important to keep track. This can be done here
http://www.investing.com/rates-bonds/world-government-bonds
Whatever happens we need a rate really below 5% and there is absolutely no danger of Ireland failing to exit the program at the end of the year. But the lower the yield the better off we are as well.
Quite telling Italy is at 1% yield for a 1 year bond. Ireland is at .33%. Italy 2 year is at 2.2%. Irish 2 year 0.93%. Doing very well.
So let's keep this thread for these updates bad or good. Thanks!:cheers:
*As investors buy bonds the price of bonds rises and thus the interest rate falls, when they sell the price of bonds fall and the interest rate rises*