Europe was leaking on slower growth expectations and ongoing pain in Spain but the US NFP print hit it while it was down and stumbled the already-underperforming German DAX - now down almost 4% on the day. Interestingly the Italian and Spanish yields and yield spreads are compressing modestly (doesn't seem at all clear why unless desperation has brought the rest of LTRO money off the table among Spanish banks - though Bund relative weakness may explain it - though rumors of ECB buying are out - after 4 months off). Bunds are underperforming notably as 10Y TSY - 10Y Bunds drops 7-8bps from this morning's highs - did another safe-haven just get dissed?
European Equity Index performance today...DAX dumping
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Treasury-Bund Spread...
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Spanish bonds are rallying - though in context it does not seem too incredible (since for a start we suspect the marginal player is long-seller not a short-add). It seems like EUR96 is the ley level for the 10Y Spain bond and maybe the ECB rumors are correct...
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Charts: Bloomberg