European Sovereigns Weaken Further As Pattern Emerges
European sovereign bond spreads weakened notably today - extending losses from yesterday - ending the day unchanged to slightly wider on the week. There has been a rather notable pattern though emerging in the last week as from the US Open to EU Close, we see bonds consistently sold off. EURUSD pushed up above 1.30 on a decent stop-run amid Draghi's words. It seemed Draghi was a little less dovish than in recent days - no rate cuts, more pain for Portugal, no concessions on Spain. European equities underperformed European credit for the second day in a row - playing catch down as financials underperformed.
European Sovereign bond spreads - can you see the pattern?
even as the EUR levitates...