Capital Economics: intra-euro yield spread widening justified by fundamentals
Capital Economics’ Thomas Mathews says rising intra-eurozone government bond yield spreads versus German Bunds reflect weaker fiscal positions in countries including France, Italy and Belgium.
Capital Economics’ Thomas Mathews says in a note that the widening of intra-eurozone government yield spreads over German Bunds is justified by fundamentals, citing poor fiscal positions in France, Italy and Belgium. He says that leaves those countries’ bonds in a tough spot.