Greece Worries Might Be Spreading

Worries about Greece’s fiscal woes may be spreading outward to other highly-indebted nations on Europe’s periphery.

One sign of trouble: Investors are demanding higher yields to compensate for the increased risk of holding Portuguese, Spanish, Irish and Italian government bonds.

On Wednesday, the “spread,” or difference, between yields on such bonds and safer German debt — a gauge of market fear — has jumped higher. The gap between 10-year Portuguese bonds and German debt has widened to 0.95 percentage point from 0.92 percentage point Tuesday evening, while that between Irish and German bonds stands at 1.57 percentage points from 1.48 percentage points.

Source: WSJ

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza