Well this is a brief update to check-in on how bad the Greece 1yr bond yields are doing. For those not really aware of the significance of looking at government bond yields; the higher yield (or interest rate on a bond), the worse that government is doing. Let me explain that a little bit more. Yield is the interest in which a government plans to pay you back in exchange for holding their bonds. Typically, the worse a country is doing economically, the higher the yields have to be in order to attract investors that would be willing to invest in that country and purchase their bonds.
Here’s quick comparison (at the time of writing);
- Canada 10yr Bond = 1.98%
- US 10yr Bond = 1.97%
- Greece 10yr Bond = 29.90%
- Italy 10yr Bond = 6.63%
As you can see, the Greece bond yields are so high it just shows how much investors refuse to invest in such an unstable country. When government bond yields reach this high its only a matter of time before they default.
– MastermindGrowth.com
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