Rates are soaring ever higher

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Rates are soaring ever higher, ever higher of course, but let’s not forget that we are starting from a very low base. So low even that it was the first time in the history of the world economy that rates were negative, which means that you have to pay to lend money or that tomorrow is more certain than today today since the rates remunerate the risk of time.

In the United States, the 10-year rate reached 2.75% and increased by 109 basis points over one year, or 1.09%.

In Europe it is not better. German rates have increased by 112 basis points over the last 12 months or 1.12% and in France it is 134 points or 1.34%. In Italy, it is even more spectacular with a 1.71% higher rate.

In Greece, rates are soaring and we are now at 2.84%, but with an ever worse debt/GDP ratio.

Watch rates, it’s a real indicator of crisis especially in Europe and even more so for the euro zone.

Charles SANNAT

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