The tensions with the euro zone could be about to return. This could force the market back to focusing on solvency concerns, Ireland and Portugal will be back in the spotlight next week.
On Thursday, the Irish central bank warned that costs for issuing bonds are too high, with the governor saying premiums that investors demand to hold Irish debt are "ridiculous."
German yields are too low given pace of growth, Bunds are expensive. With Ireland I wonder whether the market is willing to keep believing things remain OK when we are facing major austerity measures.
~~ Steven Major, the head of fixed income research at HSBC
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