Share this post Copy link X icon X (Twitter) LinkedIn Facebook Email French bond yield spread to Germany continues to rise A sharp drop in the German 10-year Bund yield, combined with continued gains in the French 10-year OAT yield, has widened the spread between the two to 152 basis points.
During the European debt crisis of 2011, the spread blew out to roughly 190 basis points, so current conditions are approaching those levels.
The difference now: Inflation in 2011 was more or less non-existent, allowing the ECB to provide the necessary monetary ease to defuse the crisis. The ECB today, though, is dealing with growing inflation issues and has been in policy-tightening mode.