A financial flood, as spreads lap over the top of the previous high water mark for the crisis. We’re at fresh records of 4.85 bp this morning, easily surpassing the old high of 4.72 set during the intense period of crisis last November.
Spanish t10s are 38 bp wider, at 6.31%, this morning, as the market reckons Spain won’t be able to bail the banks out on its own. If Greece is too big to fail, the fear is that Spain is too big to save.
The euro continues its slow, steady decline, eying yet another barrier at 1.2850 in early US trade. 1.2817 is modest support, if we break through that level. Sellers await up at 1.2885/90 near-term.
