Market need time to digest the downgrade of Euro-zone? They are sickening stupid or they are in denied that they can pull this out. Risk-on speculators don't want to let it go because they used to enjoy the rally. The fact kick in on their faces but still noone seem to believe it.
EUR move Exaggerated?
The market needs an extended break to digest what was dumped on her late Friday and Martin Luther King Day in the US gives us that opportunity. The decision by S&P to downgrade the sovereign ratings of nine euro-zone nations continues to weight on risk sentiment across all asset classes. Thus far, the market believes that the one notch downgrade in France’s rating to AA+ should not snowball into widespread selling of French product. That theory has been tested this morning with the French Treasury coming to market with +EUR8.7b of 84-day-357-day T-bills. The issues drew strong investor demand in Frances first bill ... (full story)