EU Sovereign Debt Spreads

While spreads on high yield US debt are at their lowest levels since early August of last year, the picture among major EU sovereigns is more mixed.  The charts below show the spreads between 10-year sovereign debt of Italy, France, Spain, and Portugal relative to Germany. 

Although spreads on Italian debt are back down to their lows of August, spreads in the other three countries remain elevated.  That being said, spreads on the debt of France, Spain, and Portugal have certainly stabilized, which is a positive for those markets.