- Late in the day, Papandreau announced that there will be a country wide referendum in January on the new EU deal. An opinion poll published on Sunday showed that more than 60 per cent of Greeks were opposed to the terms of the new bail-out. FT
- MF Global filed for bankruptcy.
- MoF intervened across Yen crosses. They sold an estimated 5-6trn Yen. The intervention came on the last day of the month, helping exporters looking to repatriate overseas earnings before closing their books.
- Chicago PMI declined to 58.4 in Oct vs 59 exp and 60.4 prev
- Dallas Fed improved to 2.3 vs -5 exp and -14.4 prev
- Berlusconi ruled out early elections and said the current legislature in Rome will last until 2013, according to an interview published yesterday in Corriere della Sera.
- Italian 10yr yield spread over bunds hit new highs. Trichet said that markets ‘over-interpreted’ Draghi’s support of the SMP. Reuters is reporting the SMP was in the market on Mon buying Italian debt after yields spiked.
- EU CPI estimate was unchanged at 3.0% YoY in Oct vs 2.9% exp. Italian CPI drove the surprise, coming in at 3.8% vs 3.5% exp and 3.6% prev
- EU Unemployment increased to 10.2% in Sept vs 10% exp and prev. It matched the cycle high.
- UK M4 Money Supply declined to -1.7% YoY in Sept vs -0.6% prev
- South Korea Mfg Business Survey declined to 82 in Nov vs 86 prev.
- Japanese Mfg PMI increased to 50.6 in Oct vs 49.3 prev
The price action suggests we got a big equities to bonds asset allocation shift this month end as prices moved sharply between 3PM and 4PM, between the treasury futures close and the stock market close. The Greek referendum news certainly helped, but hit the wires before the move in prices.