A disconnect between news and price action.

Last week we noticed some spreads blew out even further, particularly thanks to the concern of Ireland and its banks.

You might also remember the Wall Street Journal article that rehashed the entire region’s banking problems and the rather large potential for the eurozone economies to experience another round of turmoil post stress tests. The euro’s knee-jerk reaction was not good; but it needed very little time to shake off the dirt and begin a strong move higher.