I’m not sure what this means, but the Euro basis swap just hit a new low for this crisis. Maybe it will just take time to catch up, maybe it is a sign that the rate cut isn’t transferring through the system (yet).
We have moved 40 points on the SPX from the overnight lows to the morning highs. Fortunately a chunk of that move was on the quashing of attempted democracy in Greece. If it hasn’t been surreal up until now, it certainly is now. I have to believe there are some unintended consequences from all of this and they strike me as being potentially dangerous.