Safe haven

The safe haven spreads in the eurozone world of large banks since July 1st have been (depending on one's selection of names), approximately:

1). Long Germany vs. France, Italy, Spain - 4% returned;

2). Long Spain vs. the other three - 2% returned.

The 5 percent jump in SAN from low to close and the 46 bps drop in the Spain 10-year yield from high to close - lots of blood flowing from the short crowd. The only news was the usual - that somebody in the EU might be doing, or might be considering doing, something about it all now or at some yet to be determined date in the future. Guerrilla warfare defined.

----------------------------