French Spreads Back Near Record Wides As Germany Poops On Europe's Printing Party Again
The EURUSD is heading lower once again (back under 1.36), OATs are back near the wides of the day at 161bps, and BTP spreads to Bunds are 15bps off their best levels of the day as the Bundesbank jabs a stick in the spokes of the print-fest that seems to be the meme-du-jour for risk assets.
*BUNDESBANK SEES NO SIGNS OF CREDIT CRUNCH IN GERMANY
*BUNDESBANK SPOKESMAN SAYS NO ECB CRISIS MEETING TODAY, TOMORROW
Not exactly the talk we would expect from the ECB-proxy about to embark of regime-changing transactions.
OATs are even worse - almost back to their wides of the day!
Moreover, European risk assets are very dispersed this week. The chart below shows financial credits (light blue - Subordinated, and red - Senior) dramatically weaker, followed by corporate credit (black - investment grade, and orange - high yield), both underperforming the equity market (dark blue).
Today's equity strength is certainly not convincing.
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