Spanish, Portuguese benchmark bond yields hover just above 0%
It highlights a stunning turnaround from the euro-area crisis
Less than a decade ago, investors could barely be compensated enough to hold the bonds of Spain and Portugal for fear the nations could be severed from the European Union.
Now, they are a hair’s breadth away from having to pay for the privilege.
Before the global financial crisis, Spain was growing healthily and might have benefited from higher interest rates; Germany was growing more weakly.
As one monetary policy had to fit all, Spain benefited from low rates aimed at Germany, and enjoyed an epic construction boom that would inflict a severe and enduring recession once the bubble burst.
John Authers Bloomberg 19 augusti 2019
As one monetary policy had to fit all, Spain benefited from low rates aimed at Germany, and enjoyed an epic construction boom that would inflict a severe and enduring recession once the bubble burst.
John Authers Bloomberg 19 augusti 2019
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