Ahead of the open, (16-11)

On the back of more solid U.S eco’ data showing a resilient consumer, U.S markets started to catch a bid as Euro markets closed 11:30 (same intraday pattern seen for days last week(s). This despite a very bleak day on the Eurozone debt markets:  The culprit for yield rise today was mostly due to weaker than expected Eurozone GDP#’s.

Italian10yr yields, (back >7%), Spain, up to ~6.33% (fresh highs), France was up to 3.68%. Spreads on all non- Germany Eurozone sov. debt vs. bunds much wider.

Why the bid? Is Germany getting off the fence??

A senior economic advisor (a Wisemen) to the German government, said that the time for a political solution to the Eurozone debt crisis has passed and instead the ECB would need to step in and provide stability. 

Also, the broader German Council of Economic Experts (5 Wise' men) last week proposed creating a modified eurobond facility that could go a long way towards resolving the crisis (EU Economics Commissioner Rehn said Tues the eurobond facility deserved attention). Rehn will make a proposal next week incorporating the (Wisemen’s ) recommendations.

* The German ‘tone’ change above may turn out to be a game changer, (if you keep seeing related headlines).

Despite the reversal today, it was really just the opposite of the previous day’s trade as the futures chop continues. For this day, at least the underlying tape performed better.(R2K).