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Thursday, March 28, 2024

Sorry France, The Bond Market Has Spoken: You Are Not In The “Core” Anymore

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

What’s French for ‘sacre bleu’? While the fundamental reality of France’s record unemployment, plunging industrial production and economic growth, and treaty-busting deficits are all fact, for many months now, the ‘market’ has been convinced at Draghi’s omnipotence and enabled French bonds to trade as if they are ‘in the core’. But… on the heels of Sapin’s slap in the face of Schaeuble, shunning of Brussels, the market appears to be changing its mind about France’s credit worthiness (risk is up over 30% in the last week). Across Europe, we are witnessing a 2012 replay as re-denomination risk rises and risk spreads between the periphery (which means everything but Germany) and Germany surge

The market says “non” to the French…

And re-rates all of Europe as it seeks German safe-haven…

These are the biggest re-ratings of risk since the European financial crisis… get back to work Mr.Draghi!

Charts: Bloomberg

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