No headlines, no catalyst, just the close of the European trading session... and US equities tumble...
Did The Fed drop the buying-baton from The ECB?
It seems The ECB was overwhelmed in its own markets.
Italian 2Y Yields exploded higher (biggest single-day spike in 2Y Yield since Oct 2014)...
And Italian 10Y Yields are at their highest since Nov 2014... so bad that they are only 70bps tighter than US bonds.
Idiosyncratic risk is blowing out.
Italy's short-term risk premium to Germany is now at 90bps - almost four times its recent norms.