With Japanese and Italy 10Y bond yields hitting all-time record lows (0.505% and 2.626% respectively), one could be forgiven for thinking that all-is-well as term or devaluation premia are oddly missing. However, as the following two charts show, Japan and Italy just broke another record - sovereign debt loads (1.038 quadrillion JPY and 2.17 trillion EUR respectively).
Japan - having topped 1 Quadrillion early in the year - is marching ahead...
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and Italy is not looking back - just look at that 'austerity'...
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Keynes would be proud...
Charts: Bloomberg
