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No Periphery Panic as Losses Pale Versus 2012
The selloff in European bonds, sparked yesterday by banking woes in Portugal, evoked memories of the euro-region’s debt crisis. The minimal rise in periphery bond yields shows how far the nations have come in two years. The CHART OF THE DAY shows that even after Portuguese 10-year bonds fell, yields remained below 4 percent, less than one-quarter of the 2012 peak. The seven basis-point climb in Spanish 10-year yields, which was the fifth-biggest this year, would have barely been among the top 75 increases two years earlier. Bond prices have stabilized since European Central Bank President Mario Draghi vowed in July ... (full story)