Swiss Rates Swing Back To Negative As European Credit Ignores Equity Bounce

Tyler Durden's picture

Better than expected German confidence and another Spanish auction 'success' was not enough to encourage anyone in the real world to step into European risk assets en masse. It seems good is no longer good; sovereign spreads leaked wider to unchanged on the week, corporate and financial credit spreads are far from the exuberance we see in European stocks; and Swiss 2Y rates pushed back into the negative (after a few days respite in the green) as last night's Open-Yended decision by the BoJ saw little risk-on follow-through. Europe's VIX has pushed higher from the middle of yesterday. Of note, perhaps is the opening gap down (catch down to credit) in stocks today that was bid - but credit did not follow. EURUSD is going out slightly lower at 1.33.

European credit is not as excited at all as European stocks...

 

and even though the media proclaims another Spanish auction a success - the late day action was notably weak as Spain widened 15bps off its tights...

 

but Italian and Spanish stocks recovered from some early weakness...

 

and Swiss 2Y rates shifted back negative once again...

 

Charts: Bloomberg