The euro periphery was rocked today by the rise to power of two populist Eurosceptic political powers, which has called into question the country’s membership in the euro. Italian 10-year sovereign spreads out 22 bps. Euro banks weaker
EM relatively stable as Argentina solidifies IMF agreement. Brazil 10-year yield up another 25 bps, and 244 since April 30.
An index of the Global Systemically Important Financial Institutions (G-SIFIs) has decoupled from the S&P50 and Nasdaq, losing around 18 percent YTD. Something is not quite right. Watch this space.