The dispersion of yields was low in the first quarter of 2013, and volatility remained close to its 2009 (pre-sovereign debt crisis) levels.
Pivotal developments in reversing the deteriorating trend in confidence included the ECB’s announcements on the Outright Monetary Transaction (OMT) programme and European leaders’ commitment to establishing a banking union, along with noteworthy national developments, including the recapitalisation and restructuring of the Spanish banking sector. These are all positive developments, but there is certainly no room for complacency.