European stocks closed red for the third day in a row amid what we can only assume CNBC's Simon Hobbs would call profit-taking. Spain underperformed Italy but the DAX was worst on the day -0.8%. European govvies were quiet except for Spain. Spanish 2Y yield jumped the most in a month as 10Y spreads rose 10bps. It's a little early to sound the alarms here but the trend does appear to have stalled and with 2Y Swiss at its lowest (most negative) rate in 6 weeks, risk appetite seems to be lagging in Europe as Rajoy just won't says 'Si'. EURUSD is a little stronger on the day. Credit markets were as quiet as sovereigns with equities underperforming into the close and Europe's VIX popped back above 21% for the first time in 2 weeks.
European equity indices faded fast into the US day session...
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2Y Spain jumped the most in over a month but remains on the extreme low yield side of the last six months...
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as 10Y Spain also moved away from its peers...
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Charts: Bloomberg