Key Data Points
German 10-year Bund 6 bps lower;
France 5 bps wider to the Bund;
Belgium 6 bp wider;
Ireland 21 bps tighter;
Italy 28 bps wider;
Spain 19 bps wider;
Portugal 43 bp wider;
Greece 29 bps wider;
Large Eurozone banks weekly change, -7.5 to  1.25 percent;
Euro$ down  2.23 percent.

Comments
–  Irish sovereign spreads closed at the tightest level to the German Bund since the beginning of the crisis;
-The Irish government announced the restructuring of promissory notes used to back the now liquidated Anglo Irish Bank and Irish Nationwide;
– Spain’s Prime Minister, Mariano Rajoy denied corruption allegations, which has sparked the return of fear in the Eurozone;
– Fears of a hung parliament caused Italian markets to sell off as Silvio Berlusconi pledged to abolish the country’s unpopular property tax if elected, which Mario Monti quickly rejected;
– The euro fell sharply against on ECB President Mario Draghi’s  comments that the recent strength of the single currency could dampen growth;
– Europe’s leaders finally agreed on seven-year budget for the EU, which will reduce total spending for the first time since the EU was created.

Ireland Reaches Historic Bank Deal

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I am terribly concerned about the euro potentially destroying the EU. There is a real danger that the solution to the financial problem creates a really profound political problem.
– George Soros

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