Bond managers dismiss stress tests as 'non-event'

Bond managers have largely dismissed Friday's highly-anticipated European bank stress tests as a non-event, with the markets similarly showing a muted response in early trading.

The major UK banks have seen a 2% share price rise this morning, while French giants are about 1% higher. However, bond markets have remained muted, with both the iTraxx Euro Senior Financials and iTraxx Euro Subordinated Financials CDS indices largely flat. Ignis' Chris Bowie: "This is a total non-event, they were not stringent enough. I honestly believe they have told the market nothing. The names who failed were all ones people expected to fail anyway. I would cite two particular concerns - the 6% Tier 1 ratio which was chosen, and the fact they did not include what might happen...