The 10-year yield spread between France and Germany has increased significantly, with the spread reaching its highest level since November 2012. This widening spread is causing concerns about contagion effects to Italy and Spain due to their high debt overhangs.
😳 France - Germany 10yr Government Bond Spread https://t.co/kM2E0NgXTq
Nothing to see here: French-German 10yr spread recently rose to its highest level since November 2012.
“The Franco-German 10yr spread rose 28.6bps over the week (and 6.9bps on Friday). This brings it to its highest level since November 2012, and its largest weekly increase since late 2011 during the Euro crisis, and during German reunification in August 1990:” DB’s Jim Reid
Euro zone spreads are still low, but contagion from France to Italy is happening. On Thursday, Italy's spread over German Bunds rose 8 bps and on Friday it rose 10 bps. There's 15 days until the first-round vote in France. This pace of spread widening is a big problem for Italy. https://t.co/QTJg4r05fB
⚠️BREAKING: *FRANCE-GERMANY 10-YEAR YIELD GAP JUMPS MOST ON RECORD THIS WEEK 🇫🇷🇩🇪 https://t.co/D6sOqq69P6
That France-Germany spread is really starting to get up there. Biggest one-week widening on record. https://t.co/2zXg7XwvcK
*FRANCE-GERMANY 10-YEAR YIELD GAP JUMPS MOST ON RECORD THIS WEEK https://t.co/6Aov90u49j
The ECB will have to cap French yields. If French yields are allowed to spike, there will be immediate contagion to Italy and Spain, where large debt overhangs are worse than ever. You can already see those contagion effects playing out in French and Italian spreads now... https://t.co/ceX2Ul9Gyh
France-Germany 10Y spread https://t.co/CTcXPrh11N
Italy- Germany 10 year Yield spread https://t.co/wWbFgH8R6z
France - Germany 10 year Yield spread +32 bps for the week https://t.co/znHELlUg6e
France/Germany ~10yr spread: https://t.co/fQqiXwbGo4
French German 10Y bond spread has not been badile this in over a decade Source Bloomberg https://t.co/Wj6FgdbRf0