CHART OF THE DAY: The Great European Compression View this email online | Add newsletter@businessinsider.com to your address book |
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| | | | | | | | | | The Great European Compression
Spreads are blowing out today in Spain, Italy, and so forth.
But there's another sovereign debt story in Europe, and that is the collapse of yields in core and semi-core countries.
Morgan Stanley's Anton Heese has a great report on the European "steamroller"... i.e. the flattening of curves and spreads throughout the Eurozone.
This chart is incredibly vivid. 2-year yields in Germany, France, Austria, The Netherlands, Finland, and Belgium are all zooming to 0%.
Belgium's move, from borrowing at nearly 5% last year, to borrowing at around 0% right now is incredibly impressive.
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