Spanish 10-year yields are down a whopping 22 basis points today, matching the early July lows.
The optimism hasn’t spilled over to the euro, which is lower on the day after the Bundesbank denials. You have to think that the odds of the ECB doing something are rising and that’s what has cleared out the bond bears. Puzzling to see the euro so strong.
One notable qualifier is the Italian 10-year yield, which stubbornly remains above the August low at 5.77%.
EUR/USD bids extended down to 1.2290 with stops below Friday’s low. More bids at 1.2240/60.
