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Tuesday, October 9

9th Oct - EU Open: Sell-Off

Strange and "no news" drop in EURUSD and stock index futures down as well. tweeted Euro falling.. some idiot or computer looking at germany/spain spreads seeing 36bp wider not realising benchmark bonds changed?

Saxo's FX dealer said: Loads of speculation doing the rounds at the moment. Spain disagreeing with bailout terms, Greek creditors not able to agree on repayments, European CB selling are the most popular explanations right now. What is real is the quite hefty pop in German bunds. Also, Spanish 10y yields seem to trade ard. 30 bp higher. However, take the latest reason with a pinch of salt as there is talk that yesterday BBG has changed the benchmark for it's Spanish 10y generic yield.

@GlobalMacroZen: Bloomberg (by mistake) changed overnight its 10yr Spanish benchmark to the jan24, which is an 15yr off-the-run. This leads to an unreal showing of 30bps widening in the day for the 10yr sector.Just disregard it. Spanish 10yr benchmark is 4 wider
Previously on MoreLiver’s

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News roundup – Between The Hedges
The 6am Cut London – alphaville / FT
Emerging Markets Headlines – beyondbrics / FT

Debt crisis: live – The Telegraph
The Euro Crisis Blog – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank
European 10yr Yields and Spreads – MTS indices

Morning Briefing (Asia): USD Drifts Higher in Holiday-Thinned TradingBNY Mellon
Is South Africa facing one of its greatest post-apartheid challenges?

Asia Today: AUD outperforms as risk appetite rebounds in AsiaSaxo Bank
With most bullish post-NFP positioning wiped out overnight, Asia spent the session consolidating off yesterday’s lows with a pickup in risk appetite helping.The AUD was generally supported during the session with a strong rebound in China equities.

Market Preview: Samaras-Merkel meetingSaxo Bank
European markets are seen opening higher Tuesday on hopes of further stimulus measures from China. Meanwhile, the IMF has lowered its 2012 and 2013 global economic growth forecasts. Focus is on a meeting between Angela Merkel and Georgios Samaras.

Danske DailyDanske Bank (pdf)
The Eurogroup embraces the Spanish reform programme and Greece’s fiscal efforts. IMF lowers its global growth forecast further. Focus today will be on Merkel’s visit to Athens and the ECOFIN meeting.

AamukatsausNordea (pdf)
Euroopan pysyvä vakausrahasto vihitty käyttöön – Kreikassa epävarmuus jatkuu * IMF:ltä pessimistisempi kasvuennuste * Suomen vienti yllätti iloisesti

AamukatsausTapiola (pdf)
Osakemarkkina vastatuulessa ennen tänään alkavaa USA:n tuloskautta. IMF laski maailmantalouden kasvuennustetta, eurokriisin vaikutukset odotettua suuremmat. Euroopan valtionvarainministerit kiittelivät ja patistelivat Kreikkaa, seuraava paketti luultavasti maksetaan. Tänään Kreikkaan matkustaa Merkel. Ulkomaalaisomistusten muutokset - syyskuu: Riski kiinnosti ulkomaalaisia syyskuussa: syklisiä ostettiin ja defensiivisiä myytiin. 

Morning Briefing (EU/US): Prices you can ill affordBNY Mellon
On the subject of Norway’s house price boom

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