Sayonara, OATs: After Treasuries, Japan Now Looms Over France's Bond Rout

Last week, when 10Y Treasury yields kept grinding to multi-decade highs no matter if the data came in hot or cold (and have continued to do so this week), we pointed the finger east in "Focus Turns To Japan As Source Of Relentless Treasury Selling." The logic was simple: with JGB yields at 30-year highs, the carry trade that let Western governments run giant deficits without paying for it was coming home to roost, and Japanese money with it. 

Now it turns out the same culprit may have its fingerprints on the other bond crime scene of the moment: France.

The Most Overweight Trade In The Euro Area