Global Market: Eurozone banking crisis fears return as government borrowing costs surge - The Economic Times
Global Market: Eurozone banking crisis fears return as government borrowing costs surge - The Economic Times
Source: The Economic Times
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DW NOTE
Eurozone sovereign spreads are widening because nobody believes the ECB can hold yields down while the Fed tightens into a supply shock. The 10-year Treasury is at 5.09%, up 28% year-over-year, and European governments that spent the last decade issuing debt at negative rates are discovering what happens when the music stops. The banking system owns that debt at par.