• Spanish/German 10 year govt bond yield spread 262 bps, 13 bps wider
  • Italian/German 10 year govt bond yield spread 210 bps, 10 bps wider

No doubt hangover from Moody’s Portuguese downgrade.

EUR/USD slips through 1.4400, presently at 1.4397. Earlier had reports of sell stops through 1.4380.