Spread blowing out

The chart belows shows the Euribor Sept12 - Schatz June11 spread which I have been trading.

Since thursday it has blown out, going up and barely retracing. Today I bought the dip and messed up as I got disconnected whilst legging out and then started to sell at 87.68s, I sold every half tick up to 87.71s and was then getting ready to puke for -1000 euros at 87.72s. Luckily it bounced of this level and ranged between 70.5s and 71.5s for several hours. I made the most of this opportunity, taking over 60% of my size off and being aggressive to improve my position. I am now short just 1 clip and its 8.30pm so probably holding this overnight. The spread originally blew out over Trichets conference in which he made a comment about rates being on hold until August (I think it was)... also concerns about Greece and the Eurozone have made the euribor rally, meaning the markets now expect less of a rate hike than they did previously, which is why this spread has blown out, as the euribor has been outpacing bonds. The spread is now at 70.5s and I am printing up 75 euros! so feeling very happy to have turned this around.