Collapse in #German Swap Spread not due to fiscal risk, but to markets position for longer recessionary period while facing #liquidity issues. Swap spreads falling to zero and strong bull steepening was last observed in 2008 #GFC. German interest rates set alarm bells ringing.
Collapse in #German Swap Spread not due to fiscal risk, but to markets position for longer recessionary period while facing #liquidity issues. Swap spreads falling to zero and strong bull steepening was last observed in 2008 #GFC. German interest rates set alarm bells ringing. pic.twitter.com/aQSmxeQn2m
— 🏳️🌈 Patrick Krizan 🇺🇦 (@PatrickKrizan) November 12, 2024
#German 10y #Bund yield has been fluctuating driven alternately by interest rate expectations or risk premium (term premium). But current pattern is worrying, as growth prospects (real yield) are collapsing while risk premium (supply, interest rate and inflation uncertainty) is… pic.twitter.com/j4IuTVVZRL
— 🏳️🌈 Patrick Krizan 🇺🇦 (@PatrickKrizan) November 11, 2024