Every week we give you our summary of happenings in the bond market.
Last week, the markets did not see much action. Bond yields at the long end rose more than those of shorter dated bonds this month. This tends to be a fairly reliable reflection of a market believing that the longer-term risk premium is too low. Although the Minister of Finance is saying all the right things, we remain very concerned about the economic growth outlook and the negative implication for fiscal consolidation. No amount of talking will fix this serious structural problem.