- Bucking the Trend: positive divergence from Germany - DAX breakout with inflation low and stable over the last months. Most recent CPI reading showed a sequential decline to 0.9% in June Y/Y.
- Greece Is Not Done: Greek 10 YR Bond Yield like Greek CDS price indicates no reduction in risk. (For a point of reference, 5/10 marked the issuance of the €750 Billion European bailout “Band Aid”).
- PIIGS: excluding a meaningful breakout in Greek CDS, the remaining proverbial PIIGS show no sign of abatement. We expect risk to heighten as the sovereign debt spotlight continues to move across the continent.