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.
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%.