Yesterday we wrote about our concerns re Europe and the optimistic view that all euro sovereign bond yields should trend down as if we were on the road to Japan. We didn’t have to wait long to witness investor pain…..
Peripheral sovereign bond yields are now rising as the US 10 year Treasury yield goes below 2% and German bond yields creep towards 1.8%. A commentary from Seeking Alpha captures the situation best…
Greek bond yields have jumped 80bps today as its stock market craters 10% and we just might be into a new phase of the euro grand plan….as per our thoughts yesterday:
Germany might enjoy low bond yields for the foreseeable future but there appears to be far too much “certainty” attached to other sovereign debt yields in the event of EU political instability. That’s not Japan, that’s chaos.
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