Spanish stocks ended the week slightly in the red (the only European major to accomplish that feat) and its sovereign bond spreads ended very modestly wider. Away from that 'weakness' everywhere else was green-green-green - European stocks generally surged (though giving some back today) and bonds rallied further, compressing spreads further into pre-crisis territory. All this with a background of the worst week for the EUR (against the USD) in almost two months. Swiss 2Y rates saw some significant demand today (-2bps to -6.4bps) but are higher on the week and Europe's VIX ends the week modestly lower. Away from sovereign markets, corporate and financial credit markets did not play along with the exuberance at all...
[4]
Credit is not buying it...
[5]
Charts: Bloomberg