25 June 2015 by lberuti
Today was probably the most ridiculous we have experienced so far in terms of headlines regarding the Greek saga. As usual though, we eventually finish the day not much wiser concerning the outcome of the negotiations, which is reflected in the benign daily changes. The market appears fairly sanguine about the whole thing as it always manages to grind its way back tighter, but that masks brief spells during which the liquidity just evaporates and credit indices gap a few bps for iTraxx Main or 10bps or more for iTraxx Crossover. We had a few such instances during today’s session when we were told that “INSTITUTIONS UNANIMOUSLY AGREED ON GREECE PAPERS” or later that “GERMANY'S SCHAEUBLE SAYS GREEKS HAVE MOVED BACKWARDS”. Hopefully, that period of sterile volatility should soon be over as we have also been told that “SCHELLING SAYS SUNDAY IS DEADLINE FOR GREEK DEAL”. But we have all heard that before.