Belgium Bonds Trail Ireland in Political Paralysis: Euro Credit
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Belgium’s borrowing costs relative to those of Germany are rising at the fastest rate in the euro area as a leadership vacuum undermines efforts to cut the region’s third-biggest debt burden.
Investors demanded a yield premium of 90 basis points to lend to Belgium rather than Germany for 10 years as of Sept. 24, up 41 percent from 64 basis points on Sept. 3, when Socialist Party leader Elio Di Rupo called off talks to form a government. Spreads on Irish debt widened 21 percent in the same period to 413 basis points.