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European risk barometers still high

By   || February 8, 2010 at 12:40 GMT
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Spanish bond spreads shot higher on Friday, to 100 basis points over German bunds in the 10-year maturity on Friday. We are holding those higher levels so far Monday with debt jitters still very high.

EUR/USD rebounds are limited as a result. It remains under pressure as the US  gets underway, trying to shake off its post-Super Bowl stupor. Central banks continue to buy dips, but they’ve been buying dips for the last seven cents, without too much success. We trade now at 1.3650.

2-8 Spain spread

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