Spreads between German bunds and those in periphery of the euro zone are widening out again as the week draws to a close. Earlier this week, Spanish sovereign debt spent a considerable period of time around 220/225 bp over bunds . This morning, we’re at 244 bp, the highest levels since the ECB entered the market buying bonds aggressively during the ECB press conference on December 2.
Wider spreads are a sign of intra-European stress and are a determent to the euro…
EUR/USD is range-bound this morning amid reports of central bank activity with a narrow 1.3230/60 window.
