I have always contagion on the negative terms as it has been evolving and spreading  since the 2007.download

Was observing the great Euro zone Yield convergence at Bloomberg from the FT dash-board  –

…let’s not forget about one thing. We speak a lot about contagion when things go poorly, but I believe that there is also contagion, positive contagion, when things go well. And I think this is in play now. There is positive contagion.  – Mario Draghi,  ECB President

The Key Data Points

German 10-year Bund 5 bps higher;
France 1 bp wider to the Bund;
Belgium 9 bps tighter;
Ireland 9 bps tighter;
Italy 13 bps tighter;
Spain 17 bps tighter;
Portugal 12 bps tighter;
Greece 50 bps wider;
Large Eurozone banks up 5-12 percent;
Euro$ up 2.11 percent.

And the Comments

– Ireland, Italy, and Portugal bond yields fall to post-Eurozone debt crisis lows;
– Ireland sold €2.5 billion of  5-year bonds at 3.35 percent;
– Italy sold €3.5 billion 3-year bonds at 1.85 percent;
– Spain sold €5.8 billion of two-, five-, and 13-year bonds at yields of 2.587, 4.03 and 5.57 percent, respectively.  The auction was strongly oversubscribed;
– The ECB left  interest rates unchanged;
– Greece’s unemployment rate  soared to 26.8 percent—the highest rate ever recorded in the European Union;
– Moody’s slashed Cyprus’ credit rating three notches to Caa3 as negotiations over the €17  billion aid package remains deadlocked and banking systems remains under heavy pressure.

source : Ritholtz