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Monday, Bloody Monday... For European Bonds

Tyler Durden's picture


Absolute bloodbath in Europe:

  • Italian 10-Year Bonds Extend Drop; Yield Climbs to 6 Percent
  • Spain 10-Year Bond Yield Surges to Euro-Era Record 6.31 Percent

And more from Bloomberg...

  • Yield on 10-yr Treasuries slumped 2bps to 2.88% on haven bid as European peripheral spreads hit euro-era record high after digesting bank stress test results over the weekend.
  • Mkt skeptical over outcome of Thursday’s special summit of top EU officials as Merkel indicates unlikely to attend unless deal is on, BNP note says
  • 2/10 spread shrunk 3bps to 252bps, narrowest since December
  • "We expect to see a floor in the 2/10 slope in the 250bps zone, with the possibility of a return to 265-270bps,” note from BBVA says
  • Fed futures pricing 15% chance of Fed rate at 0.5% by April 2012 vs 14% a week ago, 22% a month ago
  • 10-yr Treasury futures due September hit new high of 125.01 to imply 3.07% vs 3.09% on Friday
  • Stay short 2-yr duration and remain weighted in 2/5s flatteners, Terry Bolton, strategist at JPM, writes in note
  • Recommend FRA/OIS wideners outright as well as 2-yr swap spread narrowers, he adds



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Mon, 07/18/2011 - 07:00 | 1465695 lolmao500
lolmao500's picture

Italy at 6%... This is it... game over for Italy.

Mon, 07/18/2011 - 07:07 | 1465708 chump666
chump666's picture

check charts for german french's spain on the default fear.  those idoits that ran the BS stress tests have caused the panic. 

this is bad.

Mon, 07/18/2011 - 07:39 | 1465753 i-dog
i-dog's picture

"this is bad"

Herr Helmut agrees with you: "Helmut Kohl blames Merkel for ruining his Europe project" (The Independent, 18 Jul, 2011).

Personally, I think it is good for the free world. If the "European Experiment" self-implodes before TPTB can complete their controlled demolition of the US, then they have no home base! ... Go Angela!! Kick Jean-Claude in the nutz!

Pass the popcorn, bitchez ... this is getting exciting!

Mon, 07/18/2011 - 07:49 | 1465777 Zero Govt
Zero Govt's picture

exciting indeed... popcorn good and if you're in Europe maybe a popgun wouldn't go amiss too

when Greece crashes with it goes the Romanian banking system as well.. we're not only going to see the gypsies of Europe kick-off onto their own streets but a flood of them penniless robbing their way across Europe

the parasites (monopolists) destroy whatever they seek to control ...the Banksters/EC/ECB's vandalism of society and the economy is just becoming very apparent to all

Burn Mutherfuking Brussels Burn  

Mon, 07/18/2011 - 09:30 | 1465879 HedgetBedgadget
HedgetBedgadget's picture

"the gypsies of Europe" you say.. really?

Do you even know the ethnic structure of the Romanian people?


Top 10 banks operating in the country are :

1) BCR (Austria)

2) BRD-SoC (France)

3)Volksbank (Austria)

4) Alpha Bank (Greece)

5) UniCredit (Italy)

6) Raiffeisen (Austria)

7) Banca Transilvania (Romania)

8) Bancpost (Greece)

9) CEC Bank (Romania)

10) ING (Netherlands)


So if Greece defaults, it wouldn't affect the country hard. Actually if Austria and France default, then the banking sector would be seriously affected.

A simple Google search could get you all this information. But like all the "bitchezz.." drones out here at Zero Hedge, you're just an uninformed fuck-up of a person.

Now all kids post at Zero Hedge. Lame.

Mon, 07/18/2011 - 12:15 | 1466678 Cpl Hicks
Cpl Hicks's picture

Name one adult who posts at ZH, name one!

Mon, 07/18/2011 - 07:46 | 1465783 chump666
chump666's picture

yeah well...y'know what is else bad? EZ CDS's blow out  to ridicules levels you can bet that UST's will become officially toxic.   

no wonder gold is super bid

Mon, 07/18/2011 - 07:49 | 1465786 Charlie Bravo
Charlie Bravo's picture

This is very bad news indeed...

Charlie Bravo

Mon, 07/18/2011 - 07:09 | 1465716 freethinker4now
freethinker4now's picture

7% no?

Mon, 07/18/2011 - 07:10 | 1465718 Sudden Debt
Sudden Debt's picture




Mon, 07/18/2011 - 07:27 | 1465751 kaiten
kaiten's picture

Next is eurobond. I give it 1-2 months.

Mon, 07/18/2011 - 07:55 | 1465801 oogs66
oogs66's picture


Mon, 07/18/2011 - 08:11 | 1465833 johngaltfla
johngaltfla's picture

Austria and Belgium.

Mon, 07/18/2011 - 08:11 | 1465830 johngaltfla
johngaltfla's picture

If that's "game over" then 7% will bring out the cries for a new Il Duce....

Mon, 07/18/2011 - 08:22 | 1465853 BorisSDT
BorisSDT's picture

How apropos - as the European slow motion train wreck continues I decided to write a sort of "investing for dumbies in the current environment" type article.  I would be interested in some feedback from you ZH guys...

Mon, 07/18/2011 - 13:35 | 1466997 Escapeclaws
Escapeclaws's picture

Great blog, Boris Traveldude! Only I went right to the most popular item entitled "American Women are Sluts" where you explain that American women are the worst in the world and counsel men to go abroad (pun intended) to run into better quality women.  What you didn't say, but amounts to the same thing, is  that AW are ball-busters. They dominate through guilt-tripping and threats. Foreign women are more beautiful, feminine, fun, and don't have voices like chain saws and they give as well as take. Don't wreck your life, or if it is wrecked already, this should give you hope that you can find the happiness you have dreamed of. Check out this blog!

Mon, 07/18/2011 - 07:03 | 1465701 Mr.Kowalski
Mr.Kowalski's picture

"Good Evening Premier Hu. We have a problem..." .. Jeal Claude Trichet

Mon, 07/18/2011 - 08:22 | 1465793 Zero Govt
Zero Govt's picture

"Houston, the ideological Euro Project-ile has just crash-landed into reality on Planet Uranus!"

Mon, 07/18/2011 - 08:24 | 1465794 Zero Govt
Zero Govt's picture

Socialism Strikes (Fails) Again!!!

Mon, 07/18/2011 - 07:04 | 1465702 Orémus
Orémus's picture

they now talk about taxing the banks

wich means they're despeared

Mon, 07/18/2011 - 07:56 | 1465802 j0nx
j0nx's picture

They're what?

Mon, 07/18/2011 - 08:13 | 1465836 Bang Dae Ho
Bang Dae Ho's picture

despaered is a mixture of despaired and disappeared, not yet in dictionaries, but soon!

Mon, 07/18/2011 - 07:06 | 1465707 Mr.Kowalski
Mr.Kowalski's picture

CNBC's Squak Box is running with the NewsCorp scandal while Rome (literally) burns. The propoganda machine is finely tuned. 

Mon, 07/18/2011 - 07:57 | 1465804 j0nx
j0nx's picture

Interesting that the Soros media empire has remained unscathed during all of this. No, not really interesting at all...

Mon, 07/18/2011 - 07:07 | 1465709 THE DORK OF CORK
THE DORK OF CORK's picture

The only thing the eurosystem can do now is flood the system with raw currency.

Mon, 07/18/2011 - 09:21 | 1465967 Iam_Silverman
Iam_Silverman's picture

"The only thing the eurosystem can do now is flood the system with raw currency."

I'm up for it!  Tell them to send me all they possibly can.  I promise to buy Eurocentric products, maybe some classic Italian wines and several finely crafted Philharmoncs.

Mon, 07/18/2011 - 09:50 | 1466036 THE DORK OF CORK
THE DORK OF CORK's picture

All of our base belongs to you.

Italy vs US: playing a different game

Imperial tax is a bitch.

Mon, 07/18/2011 - 07:07 | 1465710 AUD
AUD's picture

10-yr Treasury futures due September hit new high of 125.01 to imply 3.07% vs 3.09% on Friday

Plenty of profit left there, the Fed could even 'slash' the Fed Funds rate to zero rather than 0-0.25%.

Mon, 07/18/2011 - 07:09 | 1465714 Freebird
Freebird's picture

Gold, silver, Swiss Franc close out sale -hurry folks

Mon, 07/18/2011 - 07:09 | 1465717 lolmao500
lolmao500's picture

If Italians could go Mussollini on Berlusconi, that would make my day.

Mon, 07/18/2011 - 07:10 | 1465719 Josephine29
Josephine29's picture

I think that the change is Spain's situation is put well here.

With due respect to Greek readers the crisis is entering a new and more serious  phase as Spain and Italy get sucked into the problems and Spanish ten-year yields have touched 6 1/4%. When I started this blog back in November 2009 Spanish bond yields were around 0.2% above the UK’s now they are more than double them. Put another way it would be cheaper for Spain to call for rescue and take funds from Europe’s bail out vehicles than to issue a new ten-year bond.

Mon, 07/18/2011 - 07:41 | 1465774 i-dog
i-dog's picture

"The change in Spain is leaving mainly on the 'plane" ... to Zurich, or Argentina. LOL.

Mon, 07/18/2011 - 08:20 | 1465850 swiss chick
swiss chick's picture

Love your sense of humor!

Mon, 07/18/2011 - 07:11 | 1465724 slaughterer
slaughterer's picture

Italian 10-year needs to break 7% before anybody gets worried.  This is just vigilantism. 

Mon, 07/18/2011 - 07:12 | 1465726 Sudden Debt
Sudden Debt's picture

I wonder at which level, they'll start to put a tax on gold sales in Europe.

It's still at 0% because it's a international TRADING CURRENCY for decades now, but if it's not money it means it's a commodity so... so... this must be confusing for Bernanke.

Silver goes with a 20% sales tax. If they would raise a 20% on gold, they would be able to plug some holes for a few more months.


Mon, 07/18/2011 - 07:15 | 1465730 unky
unky's picture

why u not come over and buy your silver in germany my friend? only 7% tax on coins

Mon, 07/18/2011 - 07:41 | 1465773 Sudden Debt
Sudden Debt's picture

I know :)

I've never bought anything in my own country. All in the US and indeed also in Germany, you also charge the lowest premiums.


Mon, 07/18/2011 - 08:06 | 1465817 Zero Govt
Zero Govt's picture

SD - any experience buying in Czech Republic? i hear they're doing a splendid amount of trade, particularly with panciking Greeks, as there's no records required on PM sales there.. do you know if there's tax on PM's in Cz ??

Mon, 07/18/2011 - 08:33 | 1465865 xtrouba
xtrouba's picture

There is no tax for gold purchases, 20% for silver. And rumours about high amount of trade are surely mistaken. Everyone here is in happy deep slumber.

Mon, 07/18/2011 - 09:26 | 1465974 Iam_Silverman
Iam_Silverman's picture

"particularly with panciking Greeks"

Pancaking Greeks?  Maple syrup and sausage too?

Sorry - it's breakfast time here in the U.S.

Mon, 07/18/2011 - 07:16 | 1465733 PY-129-20
PY-129-20's picture

You are a very dangerous man.

Mon, 07/18/2011 - 07:19 | 1465740 bob_dabolina
bob_dabolina's picture

It's 28% but whatev.

Mon, 07/18/2011 - 07:14 | 1465728 slaughterer
slaughterer's picture

A raid is planned on gold/silver for today before noon.

Mon, 07/18/2011 - 07:40 | 1465772 ziggy59
ziggy59's picture

is this assumed or definite?

Mon, 07/18/2011 - 07:45 | 1465782 i-dog
i-dog's picture

From his other comments, I'd say it is "hoped for".

Mon, 07/18/2011 - 08:24 | 1465857 slaughterer
slaughterer's picture

Here comes the first raid on the early part of the COMEX session.  Very volatile and messy. 

Mon, 07/18/2011 - 09:06 | 1465926 caerus
caerus's picture

I noticed this movement too...I know nothing about a raid, of course...just thought move was strange...stops are set

Mon, 07/18/2011 - 11:17 | 1466374 i-dog
i-dog's picture

So far, the "raid" has driven the spot up by $6!

Mon, 07/18/2011 - 07:16 | 1465734 hungarianboy
hungarianboy's picture

Silver is taxed because it is used in manufacturing things like TV and so on while Gold isn't as far as I believe. Gold is simply a currency. 

Mon, 07/18/2011 - 07:23 | 1465744 AUD
AUD's picture

Gold is used in high end electronics, like expensive amplifiers & so on.

Mon, 07/18/2011 - 07:42 | 1465781 Sudden Debt
Sudden Debt's picture

and cell phones... everything that has sensitve connectors.

Mon, 07/18/2011 - 07:25 | 1465748 PaperBugsBurn
PaperBugsBurn's picture

Good, let the euro banksters have their precious juden-fetzen blow up in their faces. The dollar monkeys think this is going to save their Illuminati toilet paper. Ha! It's the whole world that wants the dollar gone and with a hollowed out economy and perpetual QE it's just a matter of time until golden nukes are deployed.

I can imagine how appreciative the euro trash will be towards the dollar banksters.

Mon, 07/18/2011 - 22:16 | 1468873 scratch_and_sniff
scratch_and_sniff's picture

Stop talking out your ass you stupid cunt.

Mon, 07/18/2011 - 07:30 | 1465757 Tense INDIAN
Tense INDIAN's picture

Sadly The European BLOODY MONDAY started as soon as the Indian markets closed....guess I will have to wait till tomorrow for a good down MOVE to the nifty

Mon, 07/18/2011 - 07:36 | 1465764 misterc
misterc's picture

Did PIMCO get it finally wrong, at least once in our lifetimes, when buying Italian bonds last week?

Mon, 07/18/2011 - 07:41 | 1465771 Silverstar
Silverstar's picture

The 2y Itallian Bonds up 10.23% now... or 4.654

Spain is up 7.4% or at 4.537


Gentleman... fasten your seatbelt... it`s getting a bumpy ride...

Mon, 07/18/2011 - 08:16 | 1465843 milanitaly
milanitaly's picture

Don't worry. When Chinese will start selling US bonds they will buy Italian Bunga Bunga Bonds as we are more solid than US

Mon, 07/18/2011 - 08:23 | 1465855 BorisSDT
BorisSDT's picture

Everybody is more solid than the US except maybe Greece...

Mon, 07/18/2011 - 09:28 | 1465972 HedgetBedgadget
HedgetBedgadget's picture

Italy is actually NOT on the verge of default. It has the third largest gold reserves on this planet.

It's that idiots, sitting in some office NY or London, hit F5 all day on "financial marketing propaganda" websites, reading about the "end of the Euro and EU", and their pimples are bursting of all the excitement, and then run and fast-type here "...INSERT_PREFERRED_METAL_HERE or INSERT_HATED(read inferiority complex)_EUROPEAN_COUNTRY_HERE ... etc etc blah blah bitches..".


Zero Hedge in its first days was a nice place of "feeds" and comments. Now the wildlife here, is mostly composed of underaged fat computer-games-playing idiots, that think that just because they have some beans canned and their papa's gun, are somehow safe.

Mon, 07/18/2011 - 07:50 | 1465790 ghostzapper
ghostzapper's picture

but, but, but . . .  Joe Kernan kept saying everything in Europe was "no big deal" and we should all chill out and watch the Dow go to 20,000

Mon, 07/18/2011 - 07:58 | 1465805 oogs66
oogs66's picture

and buy his daughter's book...all that free advertising should get taxed as a benefit

Mon, 07/18/2011 - 07:54 | 1465797 chump666
chump666's picture

dax just broke the psycho 7100 support

Mon, 07/18/2011 - 08:03 | 1465814 Dick Darlington
Dick Darlington's picture

Expecting the European Commission of Absolute Truth expressing their CONfidence in euroarea and denying there's any problems.

Mon, 07/18/2011 - 10:30 | 1466175 Zardoz67
Zardoz67's picture

Il suicidio di Mario Cal, ex vicepresidente del San Raffaele e braccio destro di don Verzè, avviene a conclusione di una riorganizzazione societaria che si è resa necessaria a causa di un indebitamento di quasi un miliardo di euro nella gestione dell'ospedale e che ha visto entrare in campo il Vaticano.

suicide the ex vice chiarman of the Clinica San Raffaele in Milano, after a hole of almost a 1 bil e. of the hospital of the Vaticano

somebody find some analogy with the suicide of Raul Gardini.


every crisis carry a Vatican Connection



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