Earlier today, Germany conducted a €7 billion Bobl auction, which however filled out the entire order book at a sub 1x Bid To Cover with just €6.12 billion in bids submitted, a €0.9 billion shortfall. In other words, this was a failed auction, with the government having to "retain" €1.555 billion in order to make the BTC seem an acceptable 1:1. Combining this negative news with the disclosure that BBVA may be suffering a commercial paper liquidity crunch, as reported earlier, has resulted in a material spike in demand in today's ECB's 7-Day Dollar auction, which came in at 5.4 billion, compared to 0 a week earlier. Expect the Fed's FX swap lines to increase by a comparable amount when the Fed's updated H.4.1 data is released this Thursday. The euro continues to slide on the negative news, although stocks both in Europe and in the US, continue trading higher as momentum programs once again take control.