all

Canada Bonds Rise on Greek Sovereign Debt Crisis


Monday, March 22nd, 2010

Canadian bonds increased on Monday as the ongoing Greek sovereign debt crisis continues to cause concerns about safety in the markets.

While gold has been getting hammered because of the recent interest rate increase by the Reserve Bank of India, which possibly could raise them again in April, bonds seem to be the choice to place money safely, at least for now.

This rise in bonds across the yield curve is considered very volatile though, and could change quickly, according to a number of industry watchers.

The ups and downs of the Greek situation, along with growing concerns about Portugal, Ireland, Italy and Spain, as well as Great Britain, make a haven of safety always there in the minds of investors on a daily basis, even when risk investing seems to be on for the day.

Another reason bonds are attractive as a place of safety is some are saying inflation looks rather tame, seeming to miss the points made by China and India that they are now starting to struggle in those areas, and if they are, it will eventually spread across the globe.

So the idea that we are in deflationary times really makes little sense in light of increasing costs in China and India, was well as oil and gas rising across the globe as well.

Either way, bonds are one place people put their money for safety, and for now, as long as gold is down, that will probably continue to be the case.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: bonds , canadian bonds , gold , safety