"These two charts basically explain everything.
The first chart shows the yield on the Swedish 5-year bond.
As you can see, it's absolutely plummeting right now.
Now here's a look at its neighbor, Finland, and the yields on its 5-year bond.
Basically they look identical all through the year up until November and then BAM. Finnish yields are exploding higher, right as Swedish yields are blasting lower.
The only obvious difference between the two: Finland is part of the Eurozone, meaning it can't print its own money. Sweden has no such risk.
This is a narrow version of something that much of the media picks up on earlier last week that UK gilts were trading with a lower yield that German bonds, a reflection of the same principle: In UK the government can print. In Germany, it can't..."
at http://www.businessinsider.com/sweden-vs-finland-2011-11?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29#ixzz1ew3yugoJ
The first chart shows the yield on the Swedish 5-year bond.
As you can see, it's absolutely plummeting right now.
Image: Bloomberg
|
Now here's a look at its neighbor, Finland, and the yields on its 5-year bond.
Image: Bloomberg
|
Basically they look identical all through the year up until November and then BAM. Finnish yields are exploding higher, right as Swedish yields are blasting lower.
The only obvious difference between the two: Finland is part of the Eurozone, meaning it can't print its own money. Sweden has no such risk.
This is a narrow version of something that much of the media picks up on earlier last week that UK gilts were trading with a lower yield that German bonds, a reflection of the same principle: In UK the government can print. In Germany, it can't..."
at http://www.businessinsider.com/sweden-vs-finland-2011-11?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29#ixzz1ew3yugoJ
