In early trade from the 125 bps I jotted down first thing.
Italian/German 10 year govt bond yield spread widens out to 381 bps from 371.
Spanish/German 10 year govt bond yield spread widens out to 409 bps from 402
Euro zone sovereign/bank concerns remain very much to the fore. EUR/USD has slipped back to 1.3115 from the 1.3130 which greeted me when I sat down. If it wasn’t for ongoing speculation the Federal Reserve may go for QE3 later this year, then EUR/USD would most probably be through the psychological 1.3000 level by now.
