Europe is doing quite well today, so it's interesting to see that Spain is down over 1%. Then I found this:
Nov. 9 (Bloomberg) -- Spain led a surge in the cost of insuring European government debt to a record on concern the region’s peripheral nations will struggle to cut budget deficits and repay debt.
Credit-default swaps on Spanish government bonds jumped 10.5 basis points to 275.5, an all-time high based on closing prices, according to data provider CMA.
The difference in yield, or spread, between 10-year Irish bonds and similar-maturity bunds widened to a record 553 basis points, or 5.53 percentage points. Portuguese 10-year bonds fell, pushing the yield 20 basis points higher to 7.02 percent. That’s the highest on record, according to Bloomberg generic data. The Portuguese-German 10-year yield spread widened 16 basis points to 449 basis points, the most ever.
Is today the day that this matters? Perhaps, perhaps not. I'd like to see a few more points to the upside before a failure.
Elsewhere, I took some partial profits on UUP yesterday. So far since the QE2 news the other day, the dollar is higher. Take note.
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