Remember When Everyone Was Freaking Over Austria This Morning?

Investors were buzzing about the widening spread between Austrian and German 10-year bonds this morning after it shot up more than 10 bps.

Turns out that freak-out was completely unwarranted—at least today.

Austria has stable public debt, which amounts to 72.3% of its GDP. Its banking sector’s exposure to Eastern Europe could have prompted market pressure today, but yields on 10-year bonds are still at a manageable 3.37%.

Despite all the hype, the bond-bunds spread actually tightened by 4.85% today:

Photo: Bloomberg

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