Wow!   When was the last time Portugal, Italy, and Greece sovereign spreads tightened this much in one week?  Spain remains a concern, however,  widening 10 bps on the week even as the Bund yield increased over 25 bps.    Banks rebounded smartly from last week’s spanking.

Key Points:
German Bund 25.6 bps higher;
Italy 10-year 20.1 bps tighter;
Spain 10-year 10.3 bps wider;
Portugal 10-year 44.9 bps tighter;
Ireland 9-year 33.9 bps tighter;
Greece 10-year w.i. 33.4 bps tighter;
Banks rebound from last week’s sell-off;
Euro/$ up 0.37%.

(click here if charts are not observable)

Category: Think Tank

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One Response to “Weekly Eurozone Watch: Bund Yield +25 bps, Tighter PIG”

  1. DeDude says:

    Considering the trillions of free money handed to the banks (which they can then invest in high yielding government bonds) it would be very bad if they did not rally as soon as it was clear that Greek default didn’t topple anybody. In order to avoid the political hot potato of printing money and handing it directly to bankrupt governments, they are printing it and handing it to banks – who harvest an absurd commission before they pass it on to those bankrupt governments. And the morons that vote in Germany are happy because at least they didn’t hand any money to those dirty lazy greeks, and at least those stupid banks that lend to the greeks will get a smack of a loss (yeah). Anybody game for a hand of tree card monte?