EURUSD Tumbles, Italian Yields Pop After Merkel Says "Firmly Against Eurobonds"

The entire hopium driven rally from yesterday afternoon on a Reuters report that Germany may be warming up to the idea of Eurobonds destroyed by one word out of place, in this case Merkel's who just said that "she stands firmly against joint Euro-bonds." Translation: market will have to punish EURUSD far more for her to change her mind.

And Italian yields: