Belgium on course to insolvency
Our table of 10-year bond spreads registered a value of 3.184% for Belgium this morning. This is where Italy and Spain were about five months ago. With a 100% debt-to-GDP level, rising short-term interest rates, no immediate prospects of a government, and the non-zero probability of a disorderly split-up of the country, it is no surprise that investor consider Belgium as a candidate for insolvency. As bond yields rise, this becomes a self-fulfilling prophecy.
(Quelle: Heutiges Eurointelligence News Briefing)