London Session: What does sub 1.30 mean?
We are in full risk aversion mode. The euro is tumbling and EURUSD is now below 1.30 while the dollar is higher across the board. The dollar index is back above 80.50 and this is weighing heavily on European stocks and commodities. Meanwhile safe havens are soaring. The UK sold GBP3bn of 10-year debt for its lowest ever yield at 2.21%. Likewise, the 30-year German Bund yield also tumbled to its lowest ever euro-era level. US treasuries are also attracting significant flow. Yesterday it sold 4-week bills with a yield of a big fat zero.