In the short term, the ECB is still holding against the capital flight from Spain government bonds, but it is powerless against the capital flight out of the euro.
The ECB's new bazooka won't help, Mrs Lagarde.
As you can see in the chart, the candy has been sucked and the trader world can see that too.
Best regards from Hannover (Lower Saxony)
I have been following BTP/Bund yield spread for a while. I thought maybe I should check Spain over Germany, so I did a quick check on Bono/Bund yield spread.
My first thoughts and reactions:
1. LOL, OMG! :-D Spanish 10y yield only 1,02 % higher above Bund??? And it is still trading at all time low???
2. Why not trade it right now? Short Bono / Long...