—In this paper we examine the level and dynamic of
integration of the government bond markets of the new EU
member states with the German market. We analyze interest
rates on 10-year government bonds during the period
2001–2011 using the same methodology as the European
Central Bank, i.e. price-based and news-based indicators. We
found out that during times of economic stability the markets
converged to Germany, whereas during times of economic
slowdown the markets diverged. However, there exist
substantial differences among the new EU member states.
Basically, Hungarian and Romanian level of convergence was
the lowest, whereas the Czech level of convergence was the
—Central and Eastern Europe, EU, financial
crisis, financial integration, government bonds.
Jiri Chaloupka is with the Faculty of International Relations, University
of Economics, Prague, Czech Republic (e-mail: email@example.com).
Cite:Jiri Chaloupka, "Government Bond Market Integration of New EU Member States," International Journal of Trade, Economics and Finance vol.3, no.6, pp. 472-478, 2012.