Bond Spreads Are Blowing Up Across Europe

It’s not just Greece and Italy facing problems.  European sovereign debt spreads relative to German bonds, a measure of the relative cost of borrowing, are rising across Europe.

Bloomberg BRIEF economist Michael McDonough put together this chart today showing how spreads are hitting new highs.  According to McDonough: “Looking a bit like the post-Lehman environment for European spreads in terms of reaching new highs.”

EuropeSpreads

Photo: @M_McDonough

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