RSSGreece austerity passes, the bond market yawns!
Michael Haltman | June 30, 2011
Greece Parliament passes austerity package 155-138! The bond market just doesn't believe it will make a difference!
Today the Greek Parliament will vote on the details for the implementation of the plan!
Bonds, bonds, bonds!
At the risk of beating the dead horse concept where the bond market is the arbiter of investor fear and of investor belief, I want to take a look at how Greece sovereign debt closed out the day where it had its fiscal viability supposedly addressed!
Or was it? Was Greece instead thrown a temporary lifeline with the prospect of default merely delayed and not permanently avoided? That would seem to be more of the case!
If the vote today actually had any real significance the price of the Greece 10-year government bond would have rallied hard and the yield would have declined sharply.
Greece 10-year Government bond June 27: 16.80%
Greece 10-year Government bond June 28: 16.45%
Greece 10-year Government bond June 29: 16.28%
Source: Bloomberg
But of course, that was not the case as the inevitable was merely postponed!
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Contributor's website: http://politicsandfinance.blogspot.com/
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