and the 2 year at 229.8% and 10 year bonds at 36.5%....enjoy.
The Greek yield curve is perverse. Much of their debt is rolling over during the next year, so the 1 year rates are staggering. Banks/ECB are buying longer term Greek bonds in an attempt to lower rates.
It will all fail of course.
It’s perverse for longer range periods to have *lower* interest rates than long term. It means that the market believes that whatever bad thing is going to happen, is going to happen within the next year. Normally, the risk built into bond prices assumes that adverse events are about equally likely anytime in the future. This behavior is consistent with a belief that a one-time readjustment will occur within 12 months.
Now I’m going to read about that Brain Eating something or other.....
Thank you all! I am now smarter than I was before! And now I’m sorry for that!
Seriously, thank you all!