- Richmond Fed -17 vs -1 exp
- Catalonia may tap Spanish regional bailout fund
- Fitch sees 35-40% Spanish real estate drop, peak to trough
- Rtrs: ECB considering negative deposit rates
- Canadian May retail sales +0.3% vs +0.5% exp
- Italian yields spike higher
- Markit US manufacturing PMI at lowest since Dec 2010
- US May house price index +0.8% vs +0.4% exp
- Lukembourg fin min: ready to act on Spain
- Long-term lows in Italian and Spanish stock markets
- OECD: must use ‘bazooka’ to cap Spanish/Italian yields
- US sells 2-year notes at record low yield
- Spain issues joint statement, others deny the jointness of it
- Spain/Germany actually issue joint statement
- US 10s hit record 1.39%
- Jiji: Japan may extend loan merger facility
- S&P 500 down 0.90% to 1338
- JPY leads, EUR lags
Fresh long-term lows in EUR/USD and EUR/JPY as Spain edges closer to the precipice. The low of the day came shortly after the European close, with EUR/USD touching 1.2043. The late-day Hilsenrath article and some stock market risk appetite spurred a modest rebound to 1.2070.
USD/JPY tried to break below 78.10 on fresh record lows in bonds but the pair was unable to make a meaningful move, stuck at 78.16.
Cable held the overnight lows around 1.5487 and then rebounded to 1.5517.
The commodity bloc continued to erode into the US afternoon, sending USD/CAD to the highest since mid-July at 1.0227 but the pair swung back to 1.0200.
Gold with the regular whipsaw between $1570/85.
