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But we saved everything 🙂.
Robin Brooks highlights a significant rise in long-term government bond yields for high-debt European countries this week. France stands out, with its 10y10y and 10y20y forward yields reaching all-time highs. Brooks suggests that market patience with fiscal dysfunction in these countries may be diminishing.
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Brooks has recently focused on currency volatility as well. He noted that the Japanese yen declined this week even after dovish U.S. inflation surprises and a favorable rate differential in 2026. Earlier, he observed that recent efforts by U.S. and Japanese authorities had not meaningfully slowed yen depreciation.