Reuters exclusive on EU states ready to rescue bank test failures

The euro slipped to a day low and British gilt futures jumped with Bunds on July 8 as investors cited a dash to safety after Reuters reported exclusively that European banks would promise to support banks that fail stress tests. As pressure mounted on periphery countries to come up with measures to help lenders, Bloomberg and newspapers including the Daily Telegraph scrambled to match the report. Market participants said the euro dipped to the day’s low of around $1.4310 after the scoop, which was based on a document prepared for finance ministers outlining how European countries will support banks that fail tests if those lenders cannot raise capital from investors within six months.