After Thursday/Friday's capitulative spikes in all things risk-on (from credit spreads to equity indices and from Swiss 2Y rates to European VIX), today saw a more modest give back of some of those gains. Spanish and Italian bond curves saw quite notable deterioration (yields up 5-20bps across the curves - dominated by short-dated weakness) - though of course in the context of the previous week's rally this was modest. Equity indices fell around 0.25% and Europe's VIX rose notably - but again all in the context of the recent rally, these were small moves. EURUSD regained 1.28 into the European close but the ranges were mininal in most risk assets and correlation across asset-classes were low too - just a noisy day with little signal ahead of the week's more cataclysmic events.
European stocks trod water...
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and 2Y Spain and Italy saw yields rise 14 and 8bps respectively on the day... (with 5Y +17bps and +14bps respectively)...
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and Europe's VIX has bounced off pre-Draghi lows...
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Chart: Bloomberg