European peripheral bond spreads finally started to 'adjust' for real risk this week with a dramatic 30-40bps decompression from the early week's tights to the closing wides. Portugal was worst (+23bps on the week) followed by Italy and Spain. Stocks were hammered - *EuroStoxx 600 2-week drop is the biggest since May 2012 and Germany's DAX 2-week drop is largest since Nov 2011*.EuroStoxx...
Germany ugly...
As peripheral bonds spreads surge...
Charts: Bloomberg Reported by Zero Hedge 4 hours ago.