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Time Out Please!

14 July 2015 by lberuti

Today was much quieter than the previous few sessions. It was quieter in terms of move’s amplitude and it was quieter in terms of volumes. I would love to say that it had to be expected given Paris was closed for Bastille Day, but the reality is that the market just needed to take a breather. During the last few weeks, Grexit was called and cancelled a couple of times leading to daily moves in excess of 10% of iTraxx Main’s (ITXEB) risk premium. This time, it looks as if the question has been answered for good, at least for a few months (indeed, the liquidity crisis has been eased for the time being, but none of the other issues have been solved) and iTraxx Main (ITXEB) has gone from 81bps last Tuesday to 65bps at the close, which certainly justifies a pause for thought. Markets could definitely use a few more quiet sessions to shake off the Greek fatigue which has set in.