The market reaction for the much rumoured Spanish bailout, is starting to dwindle, after strong 130 pips gap up in the Euro, a 100 point + rise in the European equity indexes, as well as new short term highs in many of these Euribor spreads. But as could have been assumed, we pretty much given back all of those gains and are where we were Friday as Mar14Jun14 Euribor spread which was trading as high as 9.5s is now 8.5/9s and Dec13Mar14, which was trading above 7s now is 6.5 offered.
Bunds are close to being back near the flat line, after bein off 80 ticks earlier.
This reaction is very much expected as Europe are still burdened with debt, this is simply added further to Spanish debt, and although a short term solution, it cant get away from the fact that the Economy isnt growing fast enough, and that Greece are pretty much doomed.
Im looking to short all these spreads back to the low levels as I cant see much sustained upside momentum. Sell the rallies in these Euribor spreads is my play.
Subscribe to:
Post Comments (Atom)
Front month WTI Futures plunges to negative $37 as storage costs rocket
It was a move of epic proportions in the front month WTI Crude futures, the significance of which is not really known of yet, but was incre...
-
Much has been said about the new phone and the response on the surface seems exactly how you would expect it to be. Regardless of what Appl...
-
In the previous ECB meeting we had a split decision on whether to cut rates further or not but today Mario Draghi said the council decided ...
-
With the raft of poor data out this morning, we got some strong selling pressure in all parts of the curve. The 2s-10s spread hit an all tim...
No comments:
Post a Comment