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News Link • Government Debt & Financing

EU summit: Eurozone sovereign bond yields are the best arbiter of EU summit success and failure!

• The Political Commentator
The Eurozone met and little was apparently accomplished! A casual market watcher on Friday (i.e. stock markets) in the U.S. and around the world, would have, in the absence of any below-the-surface analysis, have most likely said that based on the performance of the equity markets the EU summit had been an unqualified success. They may have believed that the financial crisis in the Eurozone had been adequately addressed and the EU member countries other than Great Britain, as well as the Eurozone itself, were put on a course for long-term financial stability. The sovereign debt market tells a different story! If indeed there had been any great success and the new treaty and other ancillary agreements had the potential to stop sovereign debt defaults, banking system failure and deep economic recession, then bond yields would have responded accordingly and fallen sharply as prices for the debt were bid up...

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