Reply To: Traders Market Weekly: Half Year Rebalancing High Wire Act


European indices recover of lows but still close lower on the day

German DAX, -1.11%
France’s CAC, -0.81%
UK’s FTSE 100, -0.88%
Spain’s Ibex, -1.1%
Italy’s FTSE MIB, -1.35%

Looking at the benchmark 10 yields in Europe, declines range from -14.3 basis points to -16.4 basis points.

Germany, 1.627%, -14.4 basis points
France, 2.164%, -15.9 basis points
UK, 2.487%, -16.7 basis points
Spain, 2.694%, -17 basis points
Italy, 3.642%, -17.5 basis points

Re: fragmentation, the spread between the Italian 10 year and the German 10 year has moved down from 254 basis points to 202 basis points (since the peak on June 14).

The pressure is off a bit, but the yield spread is still up from about 136 basis points at the end of 2021.