Not enough, surely some of it engineered, but moving in the right direction. Some of the move has been the rise in the German 10-year yield. Look at the big move in France-Germany, now below 100 bps. The big Cen Bank move yesterday lessens the risk of the French sovereign having to backstop their banking system.
Let’s hope the respite doesn’t cause complacency among the Eurocrats, however. Their modus operendi seems be: meet and discuss, wait for a crisis, generate a massive short squeeze, meet and discuss, wait for the next crisis, generate a massive short squeeze, meet and discuss, wait for the next crisis……….
The problem is time has run out and it’s now suddden death. Or to put it in more European terms, the Eurocrats are down to their last penalty kick and behind by a point. Come on, Merkozy!