On sovereign debt risk - Europe

Yesterday, I posted a comment on US unemployment data (I am most interested in today’s release to see were the U6 is heading to) and since I found an interesting chart on short selling for sovereign debt via Business Insider. It tells that Greece is by far not the only country where sovereign risk is rapidly increasing.

Since November the SovX Western Europe index doubled to over 90 bp (via Alphaville).

This morning, as I am writing (GMT+1), the Euro continues to under pressure at 1.3670 vs 1.3897 yesterday morning and 134026 the high of the week reached Wednesday.

Europe will need more than word to calm investors, at last.

Source:

Business Insider - CHART OF THE DAY: See The Countries Short-Sellers Are Abusing

http://www.businessinsider.com/chart-of-the-day-simple-average-utilization--selected-sovereign-bonds-2010-2?utm_source=Triggermail&utm_medium=email&utm_campaign=CS_COTD_020410

Dataexplorers: Sovereign Debt: Tracking the Short Sellers

http://dataexplorers.com/sites/default/files/Sovereign%20Debt%20-%20Tracking%20the%20Short%20Sellers.pdf

Alphaville: Sovereign CDS is spreading

http://ftalphaville.ft.com/blog/2010/02/04/141131/sovereign-cds-is-spreading/#showclipthis