Not just sovereign spreads blowing out, the gap in yields between bonds issued by the AAA EU...

|By:, SA News Editor

Not just sovereign spreads blowing out, the gap in yields between bonds issued by the AAA EU rescue fund (the EFSF) and German Bunds pops 15 bps higher to a record 147 basis points. The vast underperformance of this paper since being issued is sure to have the Japanese and Chinese thinking twice about plowing even more into it.