Its been a pretty gruesome session to say the least. The Dax along with the all the other European indicies are being sold off aggressively as fears grow that Spain would need a full sovereign bailout.
Dax is down almost 4% as I write and as you would expect Bunds near all time highs again, trading currently at 145.87.
The Euro has been hit hard with it trading below 1.21 against the Dollar, and at this rate we looking to test the lows set June 2010 at around 1.18. The difference is this time we have much bigger economies struggling where as that time we were dealing with Greece, Portugal and Ireland.
As far as trading action goes in the STIR spreads, surprisingly we haven't come off as much as you mite expect. Jun13Sep13 Euribor has been trading between 2 - 2.5 the whole day with low volume again, and its a similar story all along the curve. The lack of volume is still making it difficult to trade, but if we get interbank lending tightening up as we did in 08/09 we could start to sell of at the front end of the curve bringing some volatility and volume.
As the markets are pushing Spain's hand more and more, its only a matter of time before a bailout is requested, and the question is who is next! Worrying times...
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