This will super charge the collapse.
European Government Bond Yields have been getting back up to 2012-2013 levels. Not good when you’ve a long standing addiction to Pork.
The German 10 year bund hit a 12 year high on Wednesday
LONDON, Oct 6 (Reuters) - Euro zone bond yields extend their rise on Friday after U.S. employment data, while the gap between German and Italian borrowing costs hit its highest since March.
Germany’s 10-year bond yield, the benchmark for the bloc, was last up 5 basis points (bps) at 2.93% by 1315 GMT, below the 12-year high of 3.024% reached on Wednesday.
Maybe all these African and Arabic migrants aren’t going to be better at paying off Government debt, where the indigenous Europeans failed.
Italy’s 10-year bond yield was last up 7 bps at 4.97%, after briefly rising above 5%.
Longer-dated bond yields have surged since September as investors have hurried to unwind bets that central banks will soon be forced to cut interest rates as economies slow.
The U.S. economy’s strength has surprised traders and a rise in oil prices has added to concerns that inflation may take a while to squeeze back down to 2%. In the background, central banks are stepping back from the bond market as governments continue to borrow large amounts.
“If you think about the chatter at the start of the year that it wouldn’t be long until we get cuts… those days are over,” said Jackie Bowie, a managing partner at markets advisory firm Chatham Financial. “I think at last there’s an acceptance that the cheap money era is gone.”