LONDON/AMSTERDAM March 13 (Reuters) - Two-year euro swap
spreads, a measure of financial market stress, reached their
widest since mid-November on Monday, after the collapse of
lender SVB prompted a rethink among investors on the
rate outlook, which hit banking stocks hard.
The gap between two-year euro swap rates and two-year German
bond yields widened by around 20 basis points to 83
basis points, to the highest since November 11, in what analysts
said was a dash for safe-haven assets.
Global bond yields have plunged by the most since at least
the 2008 financial crisis, forcing swap spreads wider, while
banking stocks tumbled for a second day.
A swap spread measures the premium on the fixed-leg of an
interest rate swap, used by investors to hedge against rates
risk, relative to bond yields.
(Reporting by Amanda Cooper and Yoruk Bahceli; Editing by Yoruk
Bahceli)
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