Spanish 10Y Bond Yield Breaches 6% - Highest In 3 Weeks As Nothing Still Fixed

Tyler Durden's picture

The yield on 10Y Spanish bonds just broke back above 6% for the first time in three weeks as the spread to Bunds also broke above 450bps. Now up over 33bps this week (along with Italy +20bps and Portugal +36bps), it seems the market is waking to the idea that words are simply not as good as actions and even actions are irrelevant if they simply kick the can. The front-end of the Italian and Spanish curves are underperforming today (Italy 2Y +12bps and Spain +22bps) as the OMT-front-running exuberance a-la-LTRO is being unwound. It seems European credit markets were indeed on to something yesterday as they underperformed. Spanish and Italian equity markets are down around 3% with France off more than 2% and credit spreads widening notably further in financials and corporates - as EURUSD slides to 1.2850.


Spain (10Y Yield, 10Y Spread, 5Y CDS)...


Spain 2Y...

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Debtonation's picture

Keynsianism at its finest

LongSoupLine's picture




WaEver's picture

I've seen this episode before. How do I change channels


EscapeKey's picture

They need Bill Fucking Murray to present this groundhog day news.

slaughterer's picture

It could be the ECB selling the Spanish 10 year, just to force Spain into their hands.  

slaughterer's picture

I am voting 

Ron Paul for POTUS

Farage for POTEU

case closed


tawse57's picture

DOW will close above 15,000 tonight. They will pump this baby big time. Ben likes to pump his bitch DOW. Pump, pump, pump!

On second thoughts, with all that pumping 15,000 is too low. Let's have DOW 20,000 by 2PM.

The global economy is in a mess. People are doing mass protests across Europe. People are jobless, going hungry.

This will not end well.

slaughterer's picture

Career risk is high: 3 days left for the "money on the side" to get in before EOQ.  


tawse57's picture

There is no money on the side in Europe. The rich are about to be eaten by the poor.

Down this road in 1930, the Germans came...

EscapeKey's picture

In the new normal, nominal is real.

falak pema's picture

smoke and mirrors; this allows Rajoy to raise the white flag to ECB, right on cue, and tell his own people :

'I tried my best; those Oligarchy markets leave me no choice but to ask our Euro friends for help!'

Nice play, just like in Greece, and when Berlu tried to buck it, remember what happened to him!

Never cross the 7% Rubicon.

slaughterer's picture

DB/Commerzbank going down the toilet today on the DAX.   

LongSoupLine's picture

perfectly appropriate analogy, as "toilet" is where worthless crap should go.

EscapeKey's picture

Oh, I don't know. Wall Street have a long and proud history of packaging and selling worthless crap.

Iam_Silverman's picture

"Oh, I don't know. Wall Street have a long and proud history of packaging and selling worthless crap."

So, someone needs to get on the phone with Citi or GS and find a way to collateralize DB/Commerzbank, and then sell it to the world where it can be "sanitized" through re-hypothication and repo-105's!  As long as AIG will write CDS against it, I am sure CaPers is willing to buy.

lolmao500's picture

Well when you have a region trying to secede, the army threatening to overthrow the government because of austerity, big riots everywhere, 50%+ youth unemployment and people looting TONS of food from grocery stores, you BETCHA yields are gonna go up.

Spain is rapidly becoming a third world country.

caimen garou's picture

and the can is on the 20yd line but they have to send a kicker in! who will it be this time as many of the can kickers have sore toes from so much can kicking! who will it be folks?!

Iam_Silverman's picture

"who will it be folks?!"

Doesn't really matter - with the replacement refs it can be anyone, they'll pick the outcomes as they're directed from the top.

lsbumblebee's picture

I'm sure we'll have another rumor, I mean good news just in time for Friday's end of the quarter window dressing.

Dr. No's picture

Just have the ECB anounce there will be a bailout.  fixed.

EscapeKey's picture

But this one will definitely be the last!

youngman's picture

Someone just mentioned WWII....I think we need that kind of reset for this ever to change back to the old normal....and I use the 50´s and early 60´s as the old normal....where dad was a homemaker...the kids went to good public schools...where they learned..were taught right and wrong...people could own a home ...and would never move for a long knew your neighbors..your doctor..your teachers...your plumber..

But to get back to that have to destroy cities to where everyone is scrounging for food...for shelter...for water first...then on and on...a start over of and poor...back to neighborhood living..

Bastiat009's picture

Oops, euro and gold are dancing together again. We need more QEs.

Overflow-admin's picture

Gold bashed. Everything is FIXED.

Grand Supercycle's picture


Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon: