Moody’s placed Belguim on reviewfor a downgrade on Oct 8 and the market talk is that the ax will fall today. 10-year yields jumped to 5.11% today from 4.81% yesterday.
Belgium has been without an elected govt for 529 days but the FT reported today that negotiations to form one are “99.9% there”.
Reviews generally take less than three months and given the widening spreads and growing strain in European financials, it could come sooner.
