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!
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