Just out over Reuters – Spanish/German 10-yr bond spreads now at lifetime high of 192ps. Italian/German 10-yr spreads at 168bps highest since Jan 2009, French/German spreads at 39bps highest since May 2009.
Market has not reacted – looks like we are on hold til NFP in which case we could see EUR/USD above 1.22 again with option expires reportedly huge today at that level.
