Euro distress signatures

Here is a comparative assessment of the panic affecting Greek, Portuguese, and Italian government debt instruments. The spreads between the 10 year sovereign bonds of each of these countries and the German Bund had started widening since April and has gathered momentum since July.



The yields on ten year sovereign bonds too have increased sharply over the past month or so.



The cost of insuring Greek, Portuguese, and Italian debt, reflected in the 5 year CDS spreads, too have followed much the same pattern, exploding in the past two months.