German Swap Spreads Crash To Record Lows As Market Panics Over "Whatever It Takes" Fiscal Package

Update (1145ET): While some have tried to claim today's record surge in German bond yields is due to 'optimism', it is debatable how much of the "defense" spending will trickle down to growth at the Federal level.

However, as we detailed previously, one thing is certain: German deficits and debt are about to explode.

Indeed, a closely-watched gauge of the attractiveness of German debt fell to the most negative on record as German policymakers unveiled their unprecedented "whatever it takes" fiscal package meant supposedly to fund "defense" spending, but really just using the recent Ukraine fiasco as a pretext to flood the economy with debt.