Allianz chief economic adviser El-Erian said three G7 countries — the UK, Japan
and France — are especially vulnerable to sovereign debt shocks. He called the
UK a high‑beta market, where a given move in U.S. rates produces proportionally
larger moves in U.K. yields. European bond yield dynamics are shifting and
France has become the focal point of the euro‑area bond market; Italy is now
trading better than France, moving market attention from periphery risk to a
core euro‑area country.
