European Credit Closing Near The Wides Of The Day

Corporate credit was relatively stable, but bonds were lower pretty much across the board. Spanish 10 year yields broke 5% again. CDS underperformed even more, with 5 year Italy almost 15 bps wider.

Focus is turning to Spain and Portugal. The question with Portugal is when they will want to get some debt forgiveness of their own. With Spain, the question is how can an economy that seems a total mess, trade so tightly.

Was quiet today. No big loss announcements from Greek bond holders and no big lawsuits so far, from bond holders.