The bond market is a mess. Government interest rates are at an all time low and have been low for quite a long time.
Right now, you have to invest in a government bond that has a 10 year maturity just to get 1.97% a year. And that’s investing in a US Government Bond. To explore a related post; read full story.
If you look at the US versus the Eurozone, our debt is only going up, and their debt… Well, their debt may wipe out the Euro. If one more country needs to be bailed out of if Greece or Ireland default on their debt payments, the Euro as we know it may not exist.
Government Bonds Uncloaked…
Fisher Capital Management Seoul, South Korea-The global economic recovery is developing slowly, and so short-term interest rates are likely to stay in low levels for a considerable period. It is likewise possible that the ‘fudged’ agreement amongst member states of the euro-zone will be an opportunity for the presentation of the necessary austerity measures; and that a new government will finally begin to address the debt problems in the UK. But the risks in the position are still increasing, sovereign debt defaults may still occur, and the common currency system in the euro-zone can only be sustainable in its present form. Higher bond yields therefore appear unavoidable; prospects for all the bond markets are unattractive. For those who are sincerely interested in this topic; have a look at; http://dowdconsult.sosblogs.com/Dowd-Consult-b1/Safe-Investments-In-The-USA-b1-p29.htm.
The Euro carries too much of a risk premium to consider investing in it. There is way too much risk. I had a friend bet me a year ago that the dollar would be gone in a year. Obviously, I won. However, I would take that bet against the Euro failing in the next year if they do not make significant changes.