Renewed widening of yield spreads within the eurozone starkly highlights the contagion problem that is now taking hold. In turn, European equity markets reversed their recent uptrends, in many cases gapping lower in the process, suggesting extreme weakness is the likely outcome. UK 10-year yields fell to within striking distance of 2.00% as investors scrambled to find safe havens. Thus far the CHF is drifting higher, but above 1.2125 we believe the market would be on a collision course with the SNB.
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BARCLAYS CAPITAL
TECHNICAL RESEARCH