So Much For The Rescue: Greek Bund Spreads Bounce From 540 bps Back To 570 bps
After tightening to 540 bps, Greek-German 10 Year spreads are now back to 570 bps. The final outcome at this rate would still be a sovereign bankruptcy, but one which would have the US algos smiling all the way to the bank as they surge on every piece of good news and ignore the bad (a Greek Chapter 11 means billions in advisory fees for Wall Street - buy). At least the global market has said that at this point a Greek bankruptcy is a certainty. All those covering EUR shorts may want to reconsider.