Is Europe heading towards another debt crisis? France’s borrowing premium over Germany has surged to levels last seen during the 2011–2012 crisis, while the euro is falling as investors question the country’s fiscal outlook.
The bigger risk is contagion. Other eurozone yield spreads are widening, although they remain far below crisis levels. This week’s government debt auctions will test whether investor appetite remains healthy outside France or whether the nervousness is spreading.
Watch the full episode to find out more!
Intro0:56 Fed rate hike expectations decline
4:56 Euro falls on rising debt worries... what’s next?
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