Worst Day In Over 2 Months For Spanish Bonds As Swiss Rates Hit 3 Month Low

Tyler Durden's picture


A weak Spanish bond auction and relatively weak macro data did not help but sentiment  - following an Asia-inspired gap-up opening - was dismal as stocks and bonds sold off all day long. Spanish bond spreads are 38bps wider than their Monday tights and saw their biggest single-day jump in over 10 weeks. Stocks (especially Spain and Italy) fell considerably off those early spike highs but remain mixed on the week. Credit in general caught up to equity's recent move with high beta Subordinated financials leading the way (and IG lagging). Swiss 2Y rates dropped to 3 month lows.


European stocks gapped open (on Asia's push) then faded notably all day...


Credit caught up (led by financials) but then faded all day also...


Spanish bonds were hurt today - worst day in over 10 weeks...


As the safety of Switzerland encouraged rates to drop to three-month lows...


Charts: Bloomberg

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Wed, 12/05/2012 - 12:49 | 3036030 Al Huxley
Al Huxley's picture

That's funny, because based on the lack of news about Spain, Greece, Italy, etc., I had sort of assumed they'd resolved their debt crisis.  You know, maybe the Southern European economy had made a sudden recovery our something, or the fucking magic money fairy had left several hundred billion EUR under Rajoy's pillow one night.  But this article seems to suggest that maybe there are still some issues there.... How surprising.

Wed, 12/05/2012 - 12:50 | 3036039 darteaus
darteaus's picture

Well, Goldman's customers are selling gold, so they can't be expected to pay attention to what's happening with Spanish bonds.

Wed, 12/05/2012 - 12:55 | 3036058 SheepDog-One
SheepDog-One's picture

Nevermind all that, DOW suddenly ripping to the upside on nothingness. 

Wed, 12/05/2012 - 12:56 | 3036065 Yen Cross
Yen Cross's picture

 Look at the French 10year. 2% On that piece of garbage? Who is looking for safety in the French 10year?



  France 10-Year 2.003 2.007 2.063 1.992 -0.004 -0.20%
Wed, 12/05/2012 - 13:02 | 3036066 swissaustrian
swissaustrian's picture

Swiss Bonds have higher negative yields than CS and UBS deposit rates on foreign (institutional) CHF accounts, i.e. you can choose if you want to pay our tbtf or our AAA-government to hold your CHF cash.

Meanwhile the SNB announced today that they had "no comment" on the NIR on foreign CHF deposits, as if UBS and CS just came up with that idea without consulting the SNB and regulators...

Swiss paper is obviously even hotter than watches, cheese and chocolate.


Wed, 12/05/2012 - 13:20 | 3036161 Urban Redneck
Urban Redneck's picture

Since the Eurotards followed tiny Tim in cowering before the simultaneously impotent & almighty Basel III, the calculus on risk to capitalization under NIR is more complex.  UBS needs data from from CS so they can follow suit, then SNB rates can be dropped and the foreign banks are forced to join the party.

Wed, 12/05/2012 - 13:01 | 3036086 LongSoupLine
LongSoupLine's picture

Everything's fucking bullish.

We are now green on huge surge of full fucking regard algo puke funded by Bernanke. Fuck it.

Wed, 12/05/2012 - 14:21 | 3036414 flyingpigg
flyingpigg's picture

Weak bond auction in Spain, who cares? Only two hours after the cash market closed the dax futures have recovered the losses of today and are already trading around the highs of the day.

Wed, 12/05/2012 - 18:04 | 3037344 asteroids
asteroids's picture

Suppose you knew Greece was being downgraded. Wouldn't you want to mysteriously ramp the market?

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