With Japan in the middle of Golden Week (and the UK on holiday), it is perhaps no surprise that European sovereign bonds sold off today. After an epic month, which saw Italian bond spreads collapse around 100bps, today's 10bps widening in spread is the worst in six weeks (and Spain was of similar magnitudes). Equity indices were mostly in the red today (though not dismally) with Italy and Spain down 0.3% and 0.6% resepectively. The Swiss OMX was the only index in the green today. Draghi's comments that "he stands ready to act again" sent EURUSD gapping down 50 pips hovering arund 1.3070 by the close; but it was EURJPY and AUDJPY that were diverging bearishly from risk assets in general.
Worst day for European bonds in six weeks... as the 250bps Italy floor holds...
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Stocks weakened first but bonds went out at their worst levels of the day...
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EUR gapped down on Draghi's comments...
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Charts: Bloomberg