• Spanish PM Rajoy: Spain’s situation is of ‘extreme difficulty’
  • Spanish auction results. Poor auction
  • Spanish/German 10 year govt bond yield spread widens to 376 bps from 364
  • Spain 5 year credit default swaps rise 18 bps to 457 bps, highest since November 28th
  • Euro zone March final services PMI 49.2, above flash estimate of 48.7 and February’s 48.8
  • Euro zone February retail sales -0.1% m/m, -2.1% y/y vs Reuter’s median forecasts flat, -0.9% respectively.
  • German February factory orders +0.3% m/m, much weaker than Reuter’s median forecast of +1.2%. On the flip side though, January data has been revised upward to -1.8% m/m from previous -2.7%
  • German Economy Minister: Declining trend in new orders slowing, foreign demand outside euro zone giving support
  • Greek FinMin: Greece unlikely to need third bailout
  • Greek coalition party spokesman Kapsis: Election date to be annuonced next week. Bank recapitalization plan due next week. No better offer for bond swap
  • S&P report: Europe should pull out of recession in late 2012. Higher demand from emerging markets should provide support
  • UK Halifax house price index +2.2% m/m in March, demonstrably stronger than Reuter’s median forecast of -0.3%
  • UK March services PMI 55.3, up from 53.8 in February and well above Reuter’s median forecast of 53.4. Markit says PMIs signal GDP growth of +0.5% q/q in Q1
  • SNB’s Danthine: Franc overvalued

Risk off innit. European stocks, oil, gold, US treasury yields all lower. Classic risk aversion fare.

EUR/USD down at 1.3155 from early 1.3190. BIS buying just south of 1.3200 induced a fleeting half-hearted rally above 1.3200 which just didn’t have any momentum. We slipped quickly back below 1.3200 and the announcement of poor Spanish auction results (see above) accelerated the down move.

Buy orders clustered 1.3150/70 have lent support, but it’s tenuous support. Talk of further sell stops through both 1.3150 and 1.3140.

USD/JPY down at 82.20 from early 82.65, increased risk aversion and lower US treasury yields weighing on the pairing. The 10-year benchmark treasury yield is down at 2.2340 from the 2.2807 I saw first thing.

Sell-off accelerated when sell stops tripped through 82.50 with UK clearer said to have been notable seller this morning.

Buy orders said to be clustered down at 82.00/10 with more sell stops gathered just below there.

Risk barometer EUR/JPY down at 108.15 from early 109.00.

Cable has gotten off fairly lightly given the general risk-off backdrop, only very marginally easier at 1.5865 from early 1.5880. EUR/GBP cross down at .8285 from early .8303. Much better than expected Halifax housing data and services PMI data will have helped sterling’s cause (see both above)