It was a fairly quiet overnight session, both in terms of volume and price action. The late day news that S&P would place AAA-rated Eurozone countries on "creditwatch negative" has been a pervasive source of market movement, and perhaps to a greater extent, of entertainment.

It all began with the thing itself actually happening. No big surprise there, but then the comical firestorm of backlash began. Eurogroup's Junker called the move "wildly exaggerated" and (whilst what we can only assume could be wiping tears of rage from his eyes) "unfair." S&P's chief analyst in Germany fired back, saying that the coming Euro Summit represented a chance to turn things around. Collective shouts of "AH HA!!!!" were heard the world over as it was now apparently clear that the S&P move was politically motivated. We can't necessarily confirm that, but we can tell you that it was the talk of the EU session, and almost every political or economic figure in the wires overnight said something about it (some more thinly veiled than others). Here are some highlights:

RTRS - ECB'S NOYER SAYS S&P'S METHODOLOGY HAS BECOME MORE POLITICAL, LESS BASED ON FUNDAMENTALS. REFLECTION NEEDED ON WHETHER RATINGS AGENCIES CONTRIBUTING TO CURRENT CRISIS

RTRS - ECB'S NOWOTNY SAYS THINKS ACTION BY S&P WAS POLITICALLY MOTIVATED. SAYS ECB WILL NOT BE PUT UNDER PRESSURE. SAYS COUNTRIES HAVE TO SET OWN POLICY, NOT REACT TO RATINGS AGENCIES

RTRS GERMANY'S SCHAEUBLE SAYS SEES S&P MOVE AS CALL TO EU LEADERS TO DO THEIR DUTY

REUTERS SUMMIT-O'NEILL SAYS TIMING OF S&P EURO GOVT RATINGS WARNING "RIDICULOUS"; DOUBTS SIGNIFICANCE

RTRS-GERMAN ECON MINISTER SAYS WILL NOT BE SWAYED BY SHORT-TERM VIEW OF JUST ONE AGENCY

Fannie 3.5 MBS opened just over 102, currently 102-01+. 10yr yields tapped 2.09 and are now down to 2.066. The economic calendar is completely dead today. All eyes on the EU. Business as usual?