Portugal, Spain, and Italy all saw healthy high-beta gains in stocks and bonds today as the EU Composite PMI printing fractionally above 50 'proves' the crisis is over (just like it did in January 2012). Bunds suffered in this 'growth' rennaisance - underperforming Treasuries by 2bps and rising 9.5bps on the day. This is the worst day in Bunds in 5 weeks. Sell-side strategists couldnt get out of each other's way fast enough to proclaim the 'bottom is in'. Sadly, Greek stocks and bonds did not manage gains on the day as delays remain (even though D-Boom promised it will all be fine by July 29th).
Bunds Battered...
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But bonds and stocks were well bid in risk-land...
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Bonus Chart: It seems we quickly forget just how arbitrary these PMI data really is... In January 2012, EU PMI broke above 50 and the world breathed a sigh of relief that "the crisis was over" - turns out, it wasn't...
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