Ireland’s bond auction led a series of strong debt sales from the PIIGS (Portugal + Ireland + Italy + Greece + Spain) Tuesday. Looks like the EU leaders are breathing a sigh of relief because bond sales today were oversubscribed. You could look at this two ways though, since the bonds had shorter term maturities. Buyers of PIIGS treasuries might be optimistic about Europe’s debt woes and a rebound, so they buy buy buy. Or, what’s more likely is they are pessimistic about longer term treasuries due to possible contagion, and therefore buy the shorter term ones.
Here are a couple good economic visuals to put either scenario in context:
European Debt Crisis Averted – http://www.hiddenlevers.com/hl/u?cURrPC
Euro Zone Collapse – http://www.hiddenlevers.com/hl/u?9ICERE