Ten-Year Irish/German Yield Spread Hits 550 Bps For First Time- Be Careful
I will be watching yield between Irish and German debt. Traders and investors are concerned that Ireland is next Greece, hence the yield spread rising.
Greece news started hitting the market in Jan 2010 but a meltdown happened only in May 2010.In fact till April 2010, markets around the globe were making new highs.
So, it is entirely possible yield spread keeps increasing, market ignores it and keeps rising and finally when profit booking starts happening, this news again surface.
I believe in Price makes news not the other way that news makes price.
If Ireland rising yield spoils the collective mood, then Euro will also kiss 1.33/1.32.