In case you still weren’t convinced that the PIIGS crisis was back, just look at what’s happened to Irish 10-year government bond yields.
They had spiked during the spring 2010 Eurozone crisis, and now well, they’ve spiked again, to an even higher level.
That’s right, they hit a record high above 7% today, and now are at 6.93%.
The government is blaming bad news in foreign nations, other PIIGS to be exact, thus far.
Minister for Finance Brian Lenihan said negative developments in Greece and Portugal had helped push Irish Government bond yields up in the secondary market. “The developments in Portugal and Greece have been negative and there has been a corresponding deterioration in Ireland’s position as a result,” Mr Lenihan told the Dáil. “They [Irish bond yields] are very high but it’s a very thin market where Ireland is concerned at present.”
Bond prices have spiked following the collapse of Portugal’s budget talks, while Greece’s tax revenue shortfalls have reignited fears that peripheral European states may struggle to cut deficits.
What makes Ireland stand out however, is that while yields have been rising lately for all the PIIGS to some degree, and Greece’s 10-year yield is higher than Ireland’s, at above 10%, Ireland is the only PIIGS whose 10-year yield has just hit a new record high. This seems to betray the government’s notion that the latest yield spike is simply due to problems emerging in other nations.