August 17, 2010
Which chunk of the European government debt markets is giving the best read of the slow train wreck that is the euro-zone crisis right now? It’s not obvious.
On the one hand, we can all be happy that Ireland managed to dodge a major debt-market bullet Tuesday, auctioning €1.5 billion in four- and 10-year debt without a hitch.
The Emerald Isle has been in the firing line of late, dubbed “the new Greece” by Citigroup earlier this week as the cost of insuring its debt against default crept worryingly high amid concerns over the solvency of its banks. Its risk of default is nowhere near as high as Greece’s was earlier this year, but Citi’s point was that rising default-insurance costs for Ireland were dragging costs up for other shaky euro states, too, in a flashback to May’s grim bout of contagion.
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