The bond market’s (Belgian) beer goggles have firmly come off.
10-year Belgium bond spreads over German bund equivalents have risen to circa 90 basis points, or about 40 per cent more than at the start of this month. That, we’re told, is on worries the country’s current leadership vacuum will prevent it from tackling its debt burden, reportedly the third biggest in the eurozone.
And CDS levels are on the up again too . . .
Related links:
‘It’s the beginning of the endgame for…’ Belgium? - FT Alphaville
Beware Luxembourg (it’s contagious) - FT Alphaville