Ashraf explains the notion of debt mutualisation vs. Eurobonds, stating that the former uses Eurobonds to refinance all debt EXCEEDING 60% of GDP. Eurobonds proceeds would go into a Eurozone Redemption Fund. ursuing the path of Eurobonds via maturity extensions (up to 25 years) & preferential interest rates would require a loss of sovereignty.
Ashraf also talks about the increasingly adversarial opposition pursued by the Germans (to further backing the Southern nations) French (against loss of sovereignty) and Italians (insistence to obtain time for recent reforms).
Ashraf also mentions the metrics reflecting danger, such as Spain 10yr yields surpassing7.5%, Italian yields regaining 6.50-6.75% and their spreads with German 10 year yields nearing 5.0% from their current levels of 4.6%.
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Friday's post showing a possible top in US 10 year yields goes in line with the 10-2 charts. The left-hand chart shows the deterioration in the 10-2 spread, reflecting further flattening in the yield curve. This is usually a sign of the bond market challenging the Fed's rate hike expectations. Retail traders are often advised to NOT to fight the Fed, but this does NOT APPLY for the bond market, which often fights/challenges the Fed and wins. See full explanation inside the charts.