Europe Can’t Afford Its Yields. Rate Cuts Would Make It Worse
European sovereign yields have broken out to their highest levels since the euro crisis. The German 10 year Bund is trading near 3.4%, its highest since 2011, the French OAT is above 4.2%, its highest since 2008, and the OAT/Bund spread sits near 85 basis points. This is happening while the ECB is hiking, not…
