What if defense and transition issuance structurally re-rates the Bund term premium higher?
A structural rise in euro-core issuance for defense and transition re-rates the Bund term premium higher, lifting the entire euro yield complex.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-off shock. A structural rise in euro-core issuance for defense and transition re-rates the Bund term premium higher, lifting the entire euro yield complex. The trigger decomposes into signed root‑shocks — Credit spreads ▲ · Defense spending ▲ · Real yields ▲ · Risk appetite ▼ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | Tech sector XLK 📈 chart | Equity | ▼ -0.9% hist -0.69–+0.26% · other way +0.42% (n=12) |
| 2 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -0.9% hist -0.97–+0.63% · other way +25.41% (n=12) |
| 3 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▼ -0.8% hist -0.63–+0.04% · other way +0.4% (n=12) |
| 4 | Lockheed LMT 📈 chart | Equity | ▲ +0.7% hist -0.08–+1.13% · other way -2.86% (n=12) |
| 5 | Northrop NOC 📈 chart | Equity | ▲ +0.6% hist -0.17–+1.22% · other way -2.07% (n=12) |
| 6 | 30y Treasury yield DGS30 📈 chart | Rate | ▲ +6bp hist +1.83–+4.58% · other way +7.7% (n=12) |
| 7 | RTX RTXon Hyperliquid 📈 chart | Equity | ▲ +0.6% hist -1.34–+0.69% · other way -3.05% (n=12) |
| 8 | Gold XAUon Hyperliquid 📈 chart | Commodity | ▼ -0.5% hist -0.47–+0.1% · other way -0.42% (n=12) |
| 9 | 10y Treasury yield DGS10 📈 chart | Rate | ▲ +5bp hist +1.66–+3.24% · other way +6.1% (n=12) |
| 10 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▼ -0.5% hist -5.34–+1.99% · other way +6.5% (n=11) |
| 11 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▼ -0.5% hist -3.51–+1.78% · other way -3.1% (n=11) |
| 12 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▼ -0.4% hist -0.74–+0.12% · other way -0.7% (n=12) |
| 13 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▼ -0.4% model prior · unmeasured |
| 14 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▼ -0.3% hist -7.67–+2.24% · other way +6.3% (n=11) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| COIN COIN | LONG | +12.5% · 5d +9.2% | 85% | 12 | 0.55 | ⚠ differs |
| HOOD HOOD | LONG | +8.2% · 5d +0.9% | 69% | 12 | 0.36 | ⚠ differs |
| MRVL MRVL | SHORT | -0.5% · 5d -2.9% | 72% | 40 | 0.35 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.6% · 5d -0.1% | 69% | 37 | 0.31 | ✓ matches cascade |
| AVGO AVGO | LONG | +4.0% · 5d -0.5% ↺ fades | 66% | 31 | 0.31 | ⚠ differs |
| ETH ETH | SHORT | -6.8% · 5d -3.5% | 68% | 18 | 0.28 | ✓ matches cascade |
| RTX RTX | SHORT | -1.5% · 5d -1.6% | 61% | 40 | 0.19 | ⚠ differs |
| SOL SOL | SHORT | -3.3% · 5d -7.4% | 65% | 12 | 0.19 | ✓ matches cascade |
| XLF XLF | SHORT | -0.7% · 5d -0.9% | 60% | 40 | 0.18 | ✓ matches cascade |
| XHB XHB | SHORT | -1.1% · 5d -0.1% | 59% | 38 | 0.15 | ✓ matches cascade |
| US dollar DXY | LONG | +0.6% · 5d +0.2% | 58% | 40 | 0.13 | · |
| 10y yield DGS10 | LONG | +0bp · 5d +4bp | 57% | 40 | 0.11 | ✓ matches cascade |
| Volatility VIX | LONG | +5.1% · 5d +2.7% | 55% | 40 | 0.10 | ✓ matches cascade |
| MU MU | SHORT | -0.4% · 5d -2.7% | 57% | 40 | 0.10 | ✓ matches cascade |