In today's links were two articles which highlighted the juxtaposition between declining sovereign bond yields and worrisome economic fundamentals in Spain and Portugal. Both are from Reuters. In the wake of the Draghi Put that the ECB applied with the announcement of its OMT program, yields in the periphery have come way down. Meanwhile the economy on the ground is still terrible. In Spain and Portugal in particular, this is worrisome.
Here's what Reuters had to say in the first article; the headline - Worst may be over for euro zone factories - tells you the story:
"While the industrial sector looks likely to have acted as a drag on the euro zone economy in the final quarter of last year, deepening the double-dip downturn, the PMI provides hope that the first quarter could mark the s...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.