The Most Important Chart In Europe Is Having A Huge Rally

And here’s the intraday change on the yield of the Spanish 2-year bond, via Bloomberg.

image

Photo: Bloomberg

We call it the most important chart in Europe since it’s the short-term sovereign borrowing that does most of the “heavy lifting” for governments in Europe, and it’s the short-term stuff that needs to stay cheap for the governments not to have a blowup.

This weekend, a report came out suggesting that the ECB was preparing to institute caps on the spreads between short-term peripheral debt and short-term German debt, perhaps as early as the September meeting.

This it’s no surprise to see the market snatching this stuff up.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.


Tagged In

ecb moneygame-us spain