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I thought Germany was the strong kid on the block?? US Tremor Now Hitting Europe Where Germany Is In Freefall

By: capt_nemo in ROUND | Recommend this post (0)
Fri, 01 Jun 12 5:43 PM | 39 view(s)
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Submitted by Tyler Durden on 06/01/2012 09:18 -0400

Bond
European Central Bank
Germany

Europe was leaking on slower growth expectations and ongoing pain in Spain but the US NFP print hit it while it was down and stumbled the already-underperforming German DAX - now down almost 4% on the day. Interestingly the Italian and Spanish yields and yield spreads are compressing modestly (doesn't seem at all clear why unless desperation has brought the rest of LTRO money off the table among Spanish banks - though Bund relative weakness may explain it - though rumors of ECB buying are out - after 4 months off). Bunds are underperforming notably as 10Y TSY - 10Y Bunds drops 7-8bps from this morning's highs - did another safe-haven just get dissed?

European Equity Index performance today...DAX dumping

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