As Grexit contagion spreads so European peripheral bond risk has surged. Portuguese, Italian, and Spanish risk has increased by the most since May 2010. It appears that the hope of "containment" in Europe via Q€ purchases is overwhelmed by the outflows - this was extremely evident in German markets today that saw 'someone' selling both bonds & stocks as Grexit fears rose. European stocks were all battered - the worst week of the year - with Germany worst as European VIX soared 5 to 25.05 - its biggest jump in 4 months.
EU Sovs saw risk soar this week...
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By way of example, Portuguese bond spreads rose 32% this week! the worst week in almost 5 years...
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Germany saw what looked like capital outflows as bonds and stocks were dumped after Grexit fears rose...
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With Germany the worst performing market this week in Europe...
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And Europe's VIX had the 2nd biuggest weekly rise in 5 years...
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Charts: Bloomberg
