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Stefan Schubert points out that using bond yields minus nominal growth as a metric highlights a growing divergence between the U.S. and European countries such as France, Italy, and Britain.
He observes that this difference is greater than recent reporting may have suggested.
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Schubert has previously examined relative value in government bond markets. In March, he noted that the Germany-France bond spread remained below 2012 levels. At that time, spreads across major European markets were described as generally low compared to earlier crises.