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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lolmao500's picture

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

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.

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!

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  

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.

Cpl Hicks's picture

Name one adult who posts at ZH, name one!

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

Charlie Bravo's picture

This is very bad news indeed...

Charlie Bravo

johngaltfla's picture

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

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...

Escapeclaws's picture

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Mr.Kowalski's picture

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

Zero Govt's picture

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

Zero Govt's picture

Socialism Strikes (Fails) Again!!!

Orémus's picture

they now talk about taxing the banks

wich means they're despeared

Bang Dae Ho's picture

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

Mr.Kowalski's picture

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

j0nx's picture

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

THE DORK OF CORK's picture

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

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.

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.

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%.

Freebird's picture

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

lolmao500's picture

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

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.

i-dog's picture

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

swiss chick's picture

Love your sense of humor!

slaughterer's picture

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

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.


unky's picture

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

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.


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 ??

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.

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.

PY-129-20's picture

You are a very dangerous man.

slaughterer's picture

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

ziggy59's picture

is this assumed or definite?

i-dog's picture

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

slaughterer's picture

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

caerus's picture

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

i-dog's picture

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

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. 

AUD's picture

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