I published a 3 pager on Scribd earlier that just showed some snapshots of Euro-land funding curves. I’m re-posting it here:
Not only have we not seen a change in the shape of the curve, but for the past several months the entire curve was compressing. All rates were headed lower. Only now are they starting to show signs of reverting back to where they were earlier in the year. The curves haven’t even made it back to the levels of last year.
So what does this mean? It means none of this matters to European banks until it does. Don’t know what that means? Read this.