Current #eurozone spread blow-out should not be read through lens of 2012 #eurocrisis. Unlike in 2012, swap spreads of all sovereign bonds (incl. germany) are moving in same direction = rising basis for #eurozone as a whole. This pattern is closer to #GFC style liquidity crisis.… pic.twitter.com/OBsziN45gx
— 🏳️🌈 Patrick Krizan 🇺🇦 (@PatrickKrizan) December 3, 2024
My main concern about #OAT spread ist not fiscal but financial stability. Exploding swap spreads (not only for #France) indicates weak liquidity and fragile repo while monetary policy remains restrictive. Emergency #ECB #liquidity provision becoming more likely imo. pic.twitter.com/BoaubvDY4O
— 🏳️🌈 Patrick Krizan 🇺🇦 (@PatrickKrizan) December 3, 2024