The euro fell 0.8 percent to $1.0665, its biggest fall since Dec. 15 last year, while the dollar index was up 0.7 percent, its biggest rise since Jan. 6. The premium investors demand for buying French 10-year government bonds over German 10-year bonds rose to 78 basis points, the highest level since November 2012. It was 50 basis points only two weeks ago. The spread between Italian and German bonds widened to 202 basis points, the highest in three years, while the Portuguese-German spread hit 390 basis points for the first time in three years also. By 0815 GMT, however, these spreads had narrowed by as much as 5 basis points.

Source: dna February 07, 2017 09:45 UTC