The extra yield investors demand to hold Greece and Ireland bonds rather than German bunds “still remain very high, despite the rescue packages,” Shinohara said.
“That means that skepticism over the sustainability of their debt in the market hasn’t been cleared away,” said Shinohara. The extra yield investors demand to hold 10-year Spanish government bonds<http://topics.bloomberg.com/government-bonds/>rather than German bunds touched a record 298 basis points on Nov. 30 compared with an average of 15 basis points over the first decade of the monetary union. The spread was 233 basis points after Spain yesterday sold 3 billion euros ($3.95 billion) of bonds in its first debt auction of the year. http://www.bloomberg.com/news/2011-01-14/europe-failed-to-clear-skepticism-on-debt-crisis-imf-s-shinohara-says.html
