Major news agency such as CNBC are constantly reporting the economic issues facing the Eurozone. These daily updates mainly include developments on the European banks ripping increases, Spanish and Italian equity markets ramping, while EGBs basically stagnate.
Moreover and more importantly, LTRO2, Spain and Italy 10Y are 175bps and 71bps wider; Europe’s VIX is unchanged at 23%, France’s CAC and Germany’s DAX equity indices are +1-2%; and Spain’s IBEX and Italy’s MIB equity indices are -13% and 8.5% respectively.
The above chart shows the European 10Y Sovereign Bond Spreads since LTRO2.
Chart Source: Bloomberg