So far this looks quite controlled. Yes, spreads to Bund have gone up from 0.74% to 0.88% recently, but still much lower than most of the year. Am I missing something?
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You're right. Spreads are very low, but a common mistake people make is to see these spreads as an indication of better fundamentals. That's wrong, because the ECB has bought so much sovereign debt from the Southern part of the Euro zone, so spreads are artificially compressed.
sep 1, 2025, 12:14 pm • 1 0 • view