The French-German Spread Keeps Shooting Wider

Our CHART OF THE DAY yesterday was the spread between German and French 10-year bonds, which is the hot new spread in Europe, as talk of a French downgrade has people fearing that the contagion is really starting to slam the core (we already know that French banks are in trouble).

Anyway, that spread is shooting wider today, despite European equity markets actually gaining.

chart

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