The eurozone debt crisis just cannot go away, In fact, the situation only seems to be worsening.
Risk spreads on ‘peripheral’ sovereign bonds have widened, Greek two-year spreads have exploded, rising by almost 1,900bp to over 3,000bp and Greek 10-year spreads by 500bp to close to 1,500bp. Portuguese and Irish spreads have surged by somewhat smaller amounts, but also to clearly unsustainable levels.
Although much lower, spreads on Spanish and Belgian debt have risen to record highs since the introduction of the euro. What is new is that Italy has clearly appeared on the radar screen.
What is the situation now and how is the outlook of euro debt crisis? you can read the latest commentary from BNP Paribas here (for registered users only).
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