The Saudi National Bank, which is Credit Suisse's top shareholder, has ruled out more financial assistance for the bank and shares have fallen by 10% to a fresh record low. In turn, 5-year CDS in Credit Suisse have shot up further and that is perhaps starting to spook markets and sentiment in European trading.
2-year German bond yields took a quick plunge to a low of 2.62%, down nearly 40 bps from the highs less than an hour ago. We have seen a slight bounce back to 2.75% now but it is evident that markets are extremely jittery about any headline involving banks at the moment. In particular, such a big name as Credit Suisse.