Shaw Capital Management February Newsletter: Government bond Markets 3 of 3
Shaw Capital Management Korea February Newsletter: Article three of three - The
markets are assuming that the more powerful members of the eurozone will support the
weaker members...
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Shaw Capital Management February Newsletter: Government bond Markets 3 of 3
Shaw Capital Management Korea February Newsletter: Article three of three - The
markets are assuming that the more powerful members of the eurozone will support the
weaker members in order to prevent defaults that might threaten the single currency
structure; but the yield spreads have widened considerably to reflect the increased
risks.
Our tentative view is that the markets will “muddle through”, and that defaults will
be avoided; but higher overall yield levels seem unavoidable.
Prospects in these
markets are therefore very unattractive.
The gilt edged market has also come under
pressure over the past month; short-term yields have remained basically unchanged,
but there have been increases in medium and longer-term yields that has produced a
much steeper yield curve.
Shaw Capital Management Korea February Newsletter: Article three of three - There
has been evidence of a modest improvement in the economic
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