A weak Spanish bond auction and relatively weak macro data did not help but sentiment - following an Asia-inspired gap-up opening - was dismal as stocks and bonds sold off all day long. Spanish bond spreads are 38bps wider than their Monday tights and saw their biggest single-day jump in over 10 weeks. Stocks (especially Spain and Italy) fell considerably off those early spike highs but remain mixed on the week. Credit in general caught up to equity's recent move with high beta Subordinated financials leading the way (and IG lagging). Swiss 2Y rates dropped to 3 month lows.
European stocks gapped open (on Asia's push) then faded notably all day...
[5]
Credit caught up (led by financials) but then faded all day also...
[6]
Spanish bonds were hurt today - worst day in over 10 weeks...
[7]
As the safety of Switzerland encouraged rates to drop to three-month lows...
[8]
Charts: Bloomberg