Recovering bond markets in the eurozone’s periphery nations have been much hailed in the past year. Far less remarked upon – yet equally remarkable – has been the robust equity market performance of countries such as Spain, Greece, Ireland and Italy.
At the height of the eurozone crisis, yields on peripheral nations’ government bonds, which move inversely to prices, soared on fears of Europe’s monetary union breaking up. Greece’s 10-year bond yields peaked at more than 28 per cent in 2012 but have now fallen to 7.23 per cent. Similar Irish bonds, which peaked at 14 per cent, are now at 3.15 per cent.