Draghi's Dream Dashed As Spain Yields Hit Six-Week Highs

Tyler Durden's picture

Spanish bond spreads reach back above 450bps today for the first time in six weeks. The last 3 weeks have seen peripheral bonds bleeding slowly but surely as hopes of OMT fade and Draghi's dream is dashed (as the auction this morning showed just how gamed out the conditional OMT has become - no money without a crash). This 3-week shift is the largest since Super-Mario first hinted at his omnipotence and shifts spread back above their 200DMA. GGBs also fell out of bed rather nastily as their much-needed money weas delayed and the no-brainer trade has lost over 7.5% in the last 2 days. So ELA is not monetary financing; OMT is a fully effective backstop; and unicorns are real...

European govvied bond spreads are all losing steam...

 

Spanish Bond spreads leaking badly...

 

GGBs plunging...

 

EURUSD is sliding lower... but remains rich still to implied swap spreads...

 

and European stocks are rolling lower...

 

Charts: Bloomberg