“Interesting and informative take on short sovereign peripherals. I dumped short Spain today because the ECB can't control bank runs, and 60-300bp isn't compensation when the curve could easily invert at some point in the future if hedge funds start selling CDS. 7% was/is/will be benchmark for value across the curve in Club-Med despite what Draghi does. I like Mexico/Chile as a much better alternative.

“ Don't know if you ever get to the GCC, but you'd probably have a receptive audience for a seminar with some local broker sponsorship. I'd probably demand all my staff attend - certainly if it were in Muscat. I'd need to get it approved, but that just requires an advance heads up.

“ Best wishes, and keep up the good work. ”

Eoin Treacy's view Thank you for this informative email and your interest in the Chart Seminar. We would be very interested in holding an event somewhere in the Middle East and Muscat is certainly a potential venue if we can reach critical mass in terms of delegates.

Spanish 10-year yields completed an 8-year base in 2010 when they surged above 5%. The successful move above 6% in May represented a sharp deterioration in sentiment towards Spain's ability to service its debts. If the situation had been left unchecked yields would probably have surged substantially higher.

As Mario Draghi has repeatedly said, the ECB is willing to what it can but it can't do everything. Some version of a United States of Europe is required to contain the remaining threat to the Euro project. Just what form this takes with EU negotiations over the next few months is likely to be a defining characteristic for how this crisis is eventually resolved.

What looks clear is that the volatility which has been a characteristic of the response to date is likely to remain a relevant consideration for at least a while longer. From a long-term global asset allocation standpoint, we have a strong preference for the debt of countries with a strong record of fiscal discipline.

The Euro has now completed unwound its oversold condition relative to the 200-day MA when measured against the US Dollar. It will need to sustain a move above the trend mean to confirm a return to demand dominance beyond the short term.