EU bond markets deeply integrated, but accession countries left behind.
The article examines how European government bond markets are connected over time. They looked at bond returns and prices from 1998 to 2003. They found strong connections between individual EU markets and the German market, but not with the Czech Republic, Hungary, and Poland. The UK market was also considered. The integration of the accession markets is weak and stable, showing little sign of getting stronger despite increased political integration.