Debt crisis and 10-year sovereign yields in Ireland and in Portugal. Issue 4 (23rd February 2018)

• Record Type: Journal Article
• Authors: Afonso, António; Silva, Jorge
• Is Part Of: Applied economics letters. Volume 25:Issue 4(2018)
• Page Start: 217
• Page End: 222
• Publication Date: 2018-02-23
• Subjects: 10-year sovereign yield -- economic and financial adjustment programme -- Portugal -- Ireland; C20 -- E44 -- E62 -- G01; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2017.1310991
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: We assess the determinants of the 10-year sovereign yield for the period 2000–2015, in Portugal and in Ireland. Results show that the long-term Portuguese sovereign yield increased with the rise of the 10-year Bund yield and during the Securities Markets Programme, but decreased due to financial integration. Additionally, during the period of the economic and financial adjustment programme, there was evidence of additional rises (decreases) due to increases (decreases) in the 3-month Euribor rate, and the level of public debt. EU/IMF funding reduced sovereign yield.