Last fall, we wrote about the scariest boring phrase in finance: "Sovereign credit spreads in Europe are widening." Here's what EU bond spreads looked like at the time:
Since then, the spread on Greek debt has literally gone off the chart.
The Atlanta Fed, which updates the chart every week, had to re-scale it recently because spreads on Greek debt have risen so high. And spreads on Irish and Portuguese debt have more than doubled since the fall. In other words, all those worries from the fall about a debt train wreck in Europe are much more worrisome now.
Here's what the chart looked like as of this week:
Hat Tip: Calculated Risk