Greece is the favourite in Emu convergence story

The bond markets of European countries planning to join the euro are attracting increased interest on the back of convergence plays. The markets can remember the huge fall in yields when countries such as Spain and Italy lined up to join, and are now favouring Greece, which could soon be part of Emu. Other potential plays on this theme include Sweden, where the bonds have been rallying recently, and Denmark, although there is less certainty in these countries as referendums on entry must be held first. Denmark faces a referendum on Emu entry on 28 September, and this is creating uncerta...