Financial markets reacted positively on some recent austerity measures announced by the Greek government. On Thursday, Greece was able to sell €5bn in a 10-year bond issue, although for a yield of 6.25%. At these yields Greek bonds come closer to junk status as some analysts noted this week.
This then begs the question: If a Greek 10 year bond at 6.25% is viewed close to junk bond level, what are other sovereign debts such as Brazilian government bonds?
Disclosure: No positions