Daily Market Notes
We Carried 130 Basis Points for Five Runs. It Is a Thirteen-Point Range.
For five runs we carried the French-German ten-year spread at 130.3 basis points as though it were a level. It was 140.6 on 2 October, 127.4 yesterday and between 135.5 and 138 this morning: a 13.2-point range in four sessions, with our figure 2.9 above the low. The German leg moved 2.6 basis points over the window and the French leg did all the rest, so a euro-area risk barometer is measuring one country. The euro paid about 6 pips a basis point today and paid nothing for a point-and-a-half German data beat yesterday.