European stocks were
getting slammed Monday, after Moody's Investors Service issued a dire warning
on French bonds, and Asian markets were dampened by pessimistic remarks made by
a high-ranking Chinese official
.
French bond yields have been on the rise, along with Italian and
Spanish bonds -- raising some red flags for Moody's.
Moody's report on Monday focused on
the wide spread between French and German 10-year bond yields, the latter
considered to be the gold standard of stability in the European bond market.
"Last week, the difference in
yield between French and German 10-year government bonds breached 200 basis
points, a euro-era record amid increased economic and financial market
uncertainty in the region," wrote Alexander Kockerbeck, senior credit officer
for Moody's in Frankfurt . Read more at CNN Money
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