London, United Kingdom (PressExposure) February 06, 2010 -- Analysts at "Zen International" are thought to believe that the global bond markets may be the next bubble to burst after the yield on a 10-year Greek bond rose to 7.15%. By comparison, a German 10-year bund yields 3.23% and demonstrates the premium that investors are demanding to lend money to the beleaguered EU member nation.
The news came as Germany said it would not be willing to bail out weaker EU members that had become victims of their own profligacy. Ominously, yields on 10-year bonds issued by Portugal, Spain, Ireland and Italy also rose noticeably indicating contagion within the bond market.
A source close to "Zen International" suggested that the problem could affect the UK's bonds in due course unless measures were taking to reduce the nation's ballooning budget deficit.
Global governments have been borrowing heavily to finance stimulus measures and bailouts but the markets are slowly becoming saturated with bond issues fueling concerns about oversupply. "Zen International" has repeatedly warned clients to eschew government debt as an investment in favor of gold which does not depend on anyone else's ability to pay.