European Cross Country Bond Spreads
As we embark on what will likely be another painful week for European markets, here is where all the cross country spreads are as of this moment.
As compared to the stable German 10 year benchmark, the worst 5 continue to be the PIIGS, in the following order - Greece, Ireland, Portugal, Spain and Italy. The tightest spreads are for Finland, Holland, France, Austria, and Belgium. We anticipate some further divergence between the PIIGS and the rest of Europe by the end of the week.