France’s Bond Rout Is Reopening Europe’s Sovereign Debt Fault Line - The Dark Side Of The Boom
France’s Bond Rout Is Reopening Europe’s Sovereign Debt Fault Line - The Dark Side Of The Boom
Source: The Dark Side Of The Boom
―
DW NOTE
France's spread over German bunds hit 90 basis points last week — the widest since the eurozone crisis — on fears Macron's government cannot pass a budget that satisfies both Brussels and French voters. The ECB has no mandate to bail out a fiscally profligate core member, which means the bond market is now pricing French sovereign risk as if Paris were Madrid in 2012. Except this time there's no Draghi and no pretence that "whatever it takes" still means anything.