Presented with little comment aside from a slight Schadenfreude as the European equity market collapses back in line with the credit market’s much less sanguine view of the sad reality that is European social, economic, and political life. Meanwhile, German 10Y yields just broke to record low yields as EUR-USD basis swaps deteriorate and LTRO Stigma leaks to its widest since before LTRO as Spanish 10Y yields hold above 6% once again. But apart from that LTRO was a success and Europe is stable…

European equity (blue) vs Credit (rest)…

German 10Y at record low yields…

Chart: Bloomberg