Another bailout country joins Greece, Ireland and Portugal in testing the bond market waters and the interest is still high for government bonds from troubled countries.
When the book opened today it received €1.5bn in interest and that’s now nearer the €2bn mark.
The interest rate was expected to be around 5-5.25% but it’s been set at 4.85%
It just shows that the chase for yield is still very much on and 4.85% for 5 years in a low inflation environment is going to get a lot of attention. It’s been a supportive factor of the euro for many months now.
