Good investment opportunities in Europe

[AtW]

Whatever AtW. You were wrong, I put you right with a fact, so you've simply changed the subject.

Fact?

The only fact is actual high yields on those bonds, what you've given is your explanation of why it happens.

Both mine and yours are correct - yields are high because of lower demand and those who put bids in want higher %-tage, on the other hand (unlike UK) they can't print money to make up for it hence they ended up with high interest rates.

[Doggy Styles]

And UK bonds are low risk because Govt has shown willingness to print money to make up for lack of demand (which causes inflation of course so everybody in UK pays for it rather than Govt that borrows money)

Whatever AtW. You were wrong, I put you right with a fact, so you've simply changed the subject.

[AtW]

No. It's because, unlike the UK, Spain and Italy debt is high risk. People won't lend them money unless they get a higher return to cover that risk.

And UK bonds are low risk because Govt has shown willingness to print money to make up for lack of demand (which causes inflation of course so everybody in UK pays for it rather than Govt that borrows money)

[BrilloPad]

Germany will end up insuring the debt

Not sure the German voter will go for that.

[Doggy Styles]

Because unlike UK countries in euro zone can't print money to keep rates artificially low so they have to either earn them or proper borrow.

No. It's because, unlike the UK, Spain and Italy debt is high risk. People won't lend them money unless they get a higher return to cover that risk.

HTH.

[BlasterBates]

These yields are getting too high, Germany will end up insuring the debt and the yields will come down averting the crisis.

Which would give you a tidy profit as you'll be able to sell your bonds at a higher price.

[aussielong]

Because unlike UK countries in euro zone can't print money to keep rates artificially low so they have to either earn them or proper borrow.

These yields are getting too high, Germany will end up insuring the debt and the yields will come down averting the crisis.

[AtW]

Do you know why those rates are so high?

Because unlike UK countries in euro zone can't print money to keep rates artificially low so they have to either earn them or proper borrow.

[Doggy Styles]

10-year bonds:

Spain - 6.81% yield
Italy - 6.28%

Source: BBC News - Spain borrowing costs hit euro-era record high

Do you know why those rates are so high?

[BrilloPad]

10-year bonds:

Spain - 6.81% yield
Italy - 6.28%

Source: BBC News - Spain borrowing costs hit euro-era record high

I would stick to mail order brides - you might get a sh4g out of them. Unlike sovereign debt where you will get sh4gged.

[eek]

Minus 100% yield when they default.

Which based on the source of the Spanish bail-out is a real possibility as the 100bn euros has to be given priority over all other government debt.

[Alf W]

10-year bonds:

Spain - 6.81% yield
Italy - 6.28%

Source: BBC News - Spain borrowing costs hit euro-era record high

Minus 100% yield when they default.

[Paddy]

10-year bonds:

Spain - 6.81% yield
Italy - 6.28%

Source: BBC News - Spain borrowing costs hit euro-era record high

They could end up like these ones.

[AtW]

10-year bonds:

Spain - 6.81% yield
Italy - 6.28%

Source: BBC News - Spain borrowing costs hit euro-era record high