The plunge in oil prices is exacerbating worries in the market
The DAX is down by 2.8%, while other European indices are also down by roughly 2% on the day now as we see risk appetite shrink amid the plunge in oil prices during the session.
Granted, WTI June futures are off the lows now to around $16 but it is still down by over 20% today after having fallen to a low of $11.79 earlier.
In the bond market, Treasuries are bid with 10-year yields down by over 3 bps to 0.57%.
Over to Europe, it is all about the yields spread as we continue to see it rise as Italian bonds are sold heavily once again. The yields spread between 10-year Italy and Germany bonds is now 248 bps, closing in on the 278 bps high prior to the PEPP launch by the ECB.
All of this is translating into a stronger dollar and yen on the session so far today.
