Here is the one chart via Reuters that scares us most. French bond yields relative to 10-year German bonds have been spiking. The market seems concerned that a large commitment by France to backstop or recapitalize its banking system could take down the sovereign, Irish style. Not doubt this is what keeps Sarkozy up at night and is sure to catch the risk markets’ attention if it continues. Keep it on your radar.
(click here if chart is not observable)