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Despite the announced EUR 500bn package, the Eurogroup still looks divided on how, or even if, to implement a more permanent common burden sharing mechanism, per Nordea.

Key quotes 

“Euro politicians will probably continue to prefer to just glue the ship together whenever there is a major leak as it is more politically palatable, so it looks unfeasible that permanent Eurobonds will be launched, a temporary extraordinary measure is more likely.”

“Should we get a more formal move towards Coronabonds or even Eurobonds, we are tempted to buy EUR/USD (all-in) on such an announcement.”