Key Data Points
German 10-year Bund 19 bps higher;
Italy 10-year 23 bps tighter to the Bund;
Spain 3 bps tighter;
Portugal 20 bps tighter;
Ireland 54 bps tighter;
Greece 102 bps tighter;
Large Eurozone banks 3-20 percent higher;
Euro$ up 2.7 percent.
Commentary
Spreads continue to trend tighter and bank stocks higher. The Euro/$ moved above 1.30 confounding and hurting those betting on move to parity by year-end. Keep an eye on this key price as it will have a huge impact on the competitiveness of the periphery, which is more of a longer run concern, however. To paraphrase Keynes, in the long run we’re all under performers. Europe is coming off the table as a short-term concern that has kept scared money on the sidelines.
Haven’t seen traders this giddy in a long time! Giddy freakin’ up!
(click here if charts are not observable)
Category: Think Tank
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
