Market Reaction: Priced In (So Far) Except For Gold
Despite an initial knee-jerk higher on the 'ratification' confirmation, risk-asset markets seems less than enamored at the new European Conditional Union. European and US stocks popped but are falling back now - only marginally higher. EURUSD is back to pre-decision levels - though swung around in some crazy stop-seeking runs up and down. Bunds and TSYs are modestly higher in yield; Spainish and Italian bond yields are flat (so spreads are marginally lower). The biggest movers are Gold and Silver so far.
Pre-Karlsruhe: EUR 1.2870, Spain 10Y 5.677%, ES 1434, 10Y TSY 1.7100%, 10Y Bund 1.5700%, BE500 (Stocks) 187.13 (as the decision was made EURUSD cracked 60 pips lower and back up - perfectly normal algo stop-run)
Post-Decision : EUR 1.2875 (+5pips), Spain 10Y 5.70% (+3bps), ES 1436 (+2pts), 10Y TSY 1.732% (+2bps), 10Y Bund 1.614% (+4bps), BE500 (stocks) 187.7 (+.57)
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